In 2020, Bank of Canada raised the policy rate from 0.25% to 4.25%, which means a. Bank of Canada tried to stimulate the economy. b. Bank of Canada intervened in the foreign exchange market. c. Bank of Canada shrank its balance sheet. d. Canadian dollar should depreciate.
Q: Suppose a monopolist faces consumer demand given by P=300-5Q with a constant marginal cost of $100…
A: The profit is maximized where the MR = MC. The monopoly firm is price maker in the market. The…
Q: Define the concept of region and regionalism. Write the differences between old and new…
A: A geographical area with a particular degree of uniformity in terms of physical, cultural, or…
Q: Q2: Find the values from the economy below: Economy of Reggaeland Wages earned from direct…
A: GDP or gross domestic product is the sum of the value of all end commodities produced within the…
Q: Price $14 $12 $10 $8 $6 $4 $2 $0 B(2, 9.75) 1 2 3 لیا A(4, 9.3) P F(6, 6.5) C(8, 3.5) AC MC D MR 456…
A: A market form where there exists only one firm of a product and the product is unique and no close…
Q: 1. To increase consumption of prenatal vitamins by pregnant women, the government is considering the…
A: Subsidies are government payments to producers or consumers to encourage the production or…
Q: An asset costs $150,000 and has a salvage value of $15,000 after 10 years. What is the depreciation…
A: The depreciation expense is constant under the straight-line depreciation method. The assessment of…
Q: Suppose that widgets can be produced using two different production techniques, A and B. The…
A: Technology refers to the application of scientific knowledge, tools, and techniques to create,…
Q: What is the material economy?
A: An economy refers to the system of production, distribution, and consumption of goods and services…
Q: If a water pump machine will be recalibrated for each of 6 years starting 3 years after purchase,…
A: In economics, "annual worth" typically refers to the present value of a series of cash flows that…
Q: (d) The producer surplus is $_ 1600 million. Now, suppose the government imposes a quota of 60…
A: The equilibrium is where the demand curve intersects the supply curve. Producer surplus is the area…
Q: Consider the following cash flows for a project. Year CF 0 -100 1 -500 2 400 3 -100 4 400 5 500…
A: Given Cash flow Financing rate=6% Investing rate= 12%
Q: Price P₁ p* A What MOST LIKELY caused the development illustrated in this graph? B C S S₁ Q* Q₁…
A: The demand and supply framework is a fundamental economic model used to analyze the behavior of…
Q: what is unrealistic about friedman consumption theory ?
A: Friedman's consumption theory is a macroeconomic theory that suggests that an individual's…
Q: 1) when do externalities occur ? (Full in-depth sentence) 2) What are some examples of effects that…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Exposure refers to the degree to which a company is affected by exchange rate changes. The global…
A: Exchange rate refers to the value of one country's currency relative to another country's currency.…
Q: Give a brief description of the economic conditions of the Sudan
A: Economic conditions are the state of the economy as a whole, taking into account a number of…
Q: To make an item inhouse, equipement costing $245,000 must be purchased. It will have a life of 4…
A: Break-even quantity means the number of units an entity must sell to cover the entire costs. It…
Q: The value of the market basket in 2005 is 475.00 and in 2007 is 1400.00. What is the 2005 CPI, if…
A: CPI refers to the total expenditure made in a particular year by the consumers of the economy. It…
Q: Critically analyze the concept of Pareto efficiency. Use relevant theory and diagrams to support…
A: Comparing different economic results of suggested policies using Pareto efficiency is a popular…
Q: A professional athlete signs a two-year contract in which the earnings c can be modeled by…
A: Present Value: The term present value refers to the magnitude of all cashflows that occurs in the…
Q: Before about 2008, the main tool of monetary policy was open market operations ; after 2008, the…
A: Monetary policy is among the two primary macroeconomic tools governments applies on controlling the…
Q: QUESTION 1 A wise mechanical engineering graduate began saving money for early retirement by…
A: A fixed rate account is a type of savings account where the interest rate is fixed for a specified…
Q: of Price level 0 (0) Price level (4) SAS, a. (a) O b. (b) O c. (c) O d. (d) Real GDP Real GDP Price…
A: The trade-off between unemployment and inflation in an economy is represented by a Phillips curve.
Q: What is the term economists use to refer to the relationship that a higher price leads to a lower…
A: Demand curve is the downward sloping curve. Supply curve is the upward sloping curve. Equilibrium…
Q: A firm has $2,100,000 in sales, a Lerner index of 0.57, and a marginal cost of $40, and competes…
A: A firm has $2,100,000 in sales. The Lerner index is 0.57 The marginal cost is $40
Q: Consider the market for ethanol in the United States depicted in the figure to the right. Assume the…
A: Demand means the quantity of goods that a consumer is willing and able to purchase at a given price…
Q: Answer each question with one or multiple answer. 3. Who controls monetary policy? A) The Federal…
A: Monetary policy refers to the actions taken by a central bank, such as the Federal Reserve in the…
Q: 2. Calculating marginal revenue from a linear demand curve The blue curve on the following graph…
A: Demand refers to the quantity that a consumer wishes to buy at a given price in a given period of…
Q: Output per hour 0 1 Total Cost $ $ ՄԴ 1,000 1,200
A: Total cost is the sum of fixed cost and variable cost. Fixed cost is the cost that remains same at…
Q: Exotic Metals, Inc., a leading manufacturer of beryllium, which is used in many electronic products,…
A: Profit maximization is a key objective for many firms and the marginal approach is one way to…
Q: Now pretend Mincer’s has a monopoly on UConn shirts. Draw a graph where Mincer’s is originally…
A: A monopoly is a market structure where a single seller or producer controls the supply of a…
Q: How can banks create money? A) By lending required reserves B) By borrowing excess reserves C) By…
A: Since you have posted multiple questions, we will provide the solution only to the first question as…
Q: Fixed Cost Marginal Cost per item Item Sells For $600 $13 $35 Find the following. (a) the cost…
A: The fixed cost is $600. The marginal cost per item is $13. The item sells for $35.…
Q: Describe these three arguments that are often used to justify trade barriers: the national security…
A: Trade restrictions are regulations put in place largely to safeguard a country's domestic economy.…
Q: Gasoline prices have been and will continue to be a major issue for the economy. From the start of…
A: Demand refers to the amount of a good or service that consumers are willing and able to purchase at…
Q: Moving to another question will save this response. estion 2 For the following list of items,…
A: The money supply is measured through the money supply measures M1, M2 and M3. The M1 is most liquid…
Q: An economy is initially described by the following equations: C = 60+ 0.8(Y-T) I = 120-5r M/P =…
A: The IS-LM model is a macroeconomic framework used to analyze the relationship between interest…
Q: A principal of $9250 compounded monthly amounts to $15676.52 in 7 years. What is the periodic and…
A: The interest rate before accounting for inflation is referred to as the nominal interest rate. The…
Q: The ____________ is the quantity where quantity demanded and quantity supplied are equal at a…
A: Demand schedule is the tabular representation of quantity demanded at various prices. Demand curve…
Q: The commercial banking system has excess reserves of $4,000. Then new loans of $30,000 are…
A: Reserves are the part of deposit that are kept aside by the banks as per the rules of central bank.…
Q: Using the model of Aggregate Demand and Supply, explain the impact of Brexit on the Irish Economy,…
A: With increased global integration of trade and economic activities, it is more important than ever…
Q: A manufacture has been selling 1900 television sets a week at $510 each. A market survey indicates…
A: Production is an essential component of the economy because it adds value to the economy by bringing…
Q: Many would argue that the federal government’s response to the financial crisis of 2008 favored…
A: Financial crisis means decrease in the value of assets and instruments. This affect businesses very…
Q: Nicole wants to examine first if she wants to enter the market for Chanel bags and she assumes that…
A: A perfectly competitive firm is a price taker, which means it takes the price determined by the…
Q: mportance of Understanding Cost Behavior Patterns Recognizing and understanding cost behavior…
A: Cost behavior describes the relationship between changes in an associated activity or volume level…
Q: Suppose that widgets can be produced using two different production techniques, A and B. The…
A: There are two production techniques, A and B Input requirement for each level of output is given…
Q: Suppose that you are running a business, and you need some extra space for one year. Your bank…
A: Deflation: Deflation is just the opposite of inflation. It implies the circumstances when prices of…
Q: Nicole wants to examine first if she wants to enter the market for Chanel bags and she assumes that…
A: There is a market for Chanel bags, and assume that the market is under perfect competition. All firm…
Q: As the manager of Smith Construction, you need to make a decision on the number of homes to build in…
A: When the gap between total revenue and total costs is as large as possible, profit is maximised.…
Q: Source C le who Percentage of nonfarm workers unemployed Farming 40 t 30+ 20 10- 0 UNEMPLOYMENT OF…
A: The phrase "New Deal" emanates from President Roosevelt's acceptance speech for the presidential…
Give typing answer with explanation and conclusion
In 2020, Bank of Canada raised the policy rate from 0.25% to 4.25%, which means
a. Bank of Canada tried to stimulate the economy.
b. Bank of Canada intervened in the foreign exchange market.
c. Bank of Canada shrank its
d. Canadian dollar should
Step by step
Solved in 4 steps
- Explain Crowding Out with a foreign sector and where the U.S. Treasury has access to foreign savings.6. Prior to 2009, Zimbabwe experienced several years of declining real GDP. According to an article in the Wall Street Journal, “After Zimbabwe abandoned its currency in favor of the greenback, the economy grew at an annual rate of 6% in 2009 and 9% in 2010." Why would Zimbabwe abandon its own currency to begin using U.S. dollars ("greenbacks")? economy Why would using the U.S. dollar as its currency have enabled the of Zimbabwe to resume growing? What potential problems could using U.S. dollars rather than its own currency pose for the Zimbabwean government?11. Pricing foreign goods The nominal exchange rate is the price of one currency in terms of another currency. A nominal exchange rate specifies how many units of one country's currency are needed to buy one unit of another country's currency. Suppose the following table forecasts nominal exchange rate data for February 1, 2019, in terms of Canadian dollars per unit of foreign currency. Use the information in the table to answer the questions that follow. Foreign Currency United States dollar (USD). euro (EUR) Japanese yen (JPY) Mexican peso (MXN) United Kingdom pound (GBP) Cost of One Unit of Foreign Currency (Dollars) 1.31 1.50 0.012 0.068 1.72 Source: "Bank of Canada," https://www.bankofcanada.ca/rates/exchange/daily-exchange-rates/. Suppose that on February 1, 2019, a marble statue handmade in Mexico is priced at 20,000 MXN. The approximate Canadian dollar price of the statue would be
- Economics After falling in half from 1947 to the 1970s (around 10 percent to 5 percent), the share of currency in circulation - also called "cash" - has been relatively stable. It's actually been increasing since the Financial Crisis, but this is probably due to the United States shipping more currency to foreign countries who want to hold and use dollars. In any case, many people find the fact that cash hasn't disappeared in the electronic era with a lot of new forms of payment (like prepaid cards, Venmo/Zelle, etc.). What do you think are the most important reasons why cash is still being held and used today?Mr. Ali is an exchange broker. He always researched for opportunities of profit through the currencies fluctuations using the strategy 'Buy low, sell high'. He collected the below quotes: Quote GBP/OMR INR/OMR EUR/OMR AUD/OMR Spot 0.5319 0.0056 0.4581 0.2953 Forward 0.5350 0.0053 0.4518 0.2970 Which currency is more beneficial to invest in? O a. AUD O b. EUR O c. INR O d. GBP_______Refers to the market for national currencies of different countries in the world?
- Question 20 Which of the following is a credit item in the Australian capital account? Australia donates to nations affected by the Corona virus An Australian emigrates to Great Britain with his life savings of $10000 The Reserve Bank of Australia increases the holdings of foreign currency reserves None of the aboveIn 1971 a British company, Beecham Group, received a Swiss franc loan of CHF 100 million. By the time the loan was repaid in 1976, the British pound had depreciated significantly against the Swiss franc. Which of the following statements is correct? A. The cost in British pounds of making the repayment did not change. B. The financial manager of Beecham Group would not be concerned about the change in the value of the pound. C. The change in the value of the British pound increased the profitability of the Beecham Group. D. The cost in British pounds of making the repayment increased significantly.A. An exporter in the U.S is planning to ship $10,000,000 worth of automobiles to Germany in 6 months. What kind of foreign currency event should the exporter hedge against? What could happen if the exporter did not hedge? B. The selling price of 3-month forward U.K. pound sterling is $1.7107 and, the spot rate for pounds the selling price is $1.8953. Calculate the per annum percentage premium or discount in the forward rate.
- 1. Under what circumstances would the Federal Reserve Board seek to expand the money supply? What tools would it use to do? 2. What are three major differences between the Classical and Keynesian Models of the economy? 3. Differentiate between tariffs and quotas. Explain the effect of each on international trade. Why would governments want to impose tariffs and quotas? 4. Differentiate between fixed and floating exchange rates. How would a country maintain fixed exchange rates? 5. What is the Crowding Out effect of fiscal policy? What are its likely consequences?A central bank can allow its currency to fall indefinitely, but it cannot allow its currency to rise indefinitely. Why not?How can an unexpected fall in exchange rates injure the financial health of a nations banks?