Economics

1. What is the difference between National Income, Gross National Product, and Gross Domestic Product? Why do most countries now ues GDP as a measure of national output? 2. What is the difference between output and expenditure? Does this explain how national income accounting also uses a type of double-entry bookkeeping? 3. What is the difference between national savings in an open and closed economy? What implication does this have for current account surpluses and deficits? 4. When might a government be concerned about a large current account deficit or surplus? Why might a government be concerned about its official settlements balance (it's balance of payments?) 5.What is the ... click for more

Economics

1.If the Euro costs $1,5841 Canadian, what is your cost for a E200pair of showes? 2.If the canadian dollar depreciates by 10 percent, how much more do the shoes cost? 3.If Bombardier sells its aircraft in U.S. dollars, 70 percent of its cost are production are U.S.dollar-denominated, by 30 percent of its costs are Canadian-dollar-denominated does it benefit or lose from unexpected Canadian dollar appreciation? How can it "hedge" against losses from unexpected changes in the value of Canadian dollar? 4.How has the recent strength of the Canadian dollar affected the profitability of the Ottawa Senators? 5.IF you bought NOrtel stock at $2.50 a share, what was your rate of return if... click for more

Cash Management Plan

Marcia and Phil Helm have been married for several years. They have no children, and each has a professional career. Marcia is a trainee for a management position at a large department store, and Phil is an engineer at an electronics firm. Their careers have promising futures, but neither has exceptionally good income protection in the event of a layoff. The Helms have saved around $8000, and $7400 of it is in a 3.5% savings account at the credit union where Phil works. They have about $600 in a regular checking account (with Mid-City Bank) that doesn't pay any interest. The Helms' combined take home pay is about $5000/month, and Phil thinks they should take the $7400 out of their savings an... click for more

Use a AA-DD diagrammatic analysis? And other questions..

Use the AA-DD diagrammatic analysis to perform the following. Assume a flexible exchange rate regime. Label your graphs and your changes clearly. a)Compare the short-run impacts if a permanent increase in money supply versus a permanent tax cut. Keep in mind that a permanent policy alters people's expectations, which in turn shifts the AA curve. b)Compare the long-run impact of a permanent increase in money supply versus a permanent tax cut. c)What important exchange rate phenomenon underlies permanent policy changes that does not extend to temporary policy changes? Under which type of policy, monetary or fiscal, is this phenomenon responsible for accentuating the policy's... click for more

6 True and false questions about exchange rates, Bretton Woods, Inflation, gold standard

For the following questions, answer True (T), False (F) or Uncertain (U). Please briefly explain your answer. 1. Exchange rate overshooting explains why permanent government spending increases are less effective in increasing output than temporary increases. 2. Bretton Woods failed because the U.S. abused its position as the reserve currency country. 3. A central bank's inflation target affects the country's exchange rate. 4. A gold (exchange) standard introduces short-term and long-term price stability. 5. The creation of the EMU has led to greater restrictions on both monetary and fiscal policy on the part of its member countries. 6. An increase in the European Unio... click for more