I need answer for #1 this evening and the rest no later than Sunday evening. 1. Do you think the economy is in or in danger of falling into a recession then expansionary monetary policy is the correct course of action. If you think the economy is in danger or experiencing a period of inflation than contractionary policy is t
Do U.S. anti-trust laws prohibit international joint ventures?
The book is not good at explaining or giving examples of these problems
1. Describe three ways in which the Federal Reserve can change the money supply. 2. If the Federal Reserve is going to adjust all of these tools during an economy that is growing too quickly, what changes would they make? 3. If the Federal Reserve is going to adjust all of these tools during an economic recession, what cha
See the attached file for the problem. This question eventually allows us to "discover" some interesting facts about PPF's and trade theory. A closed economy produces X and Y with labor and capital. They currently have 20 units of labor and 10 units of capital. (a) Suppose production of X and Y are governed by the followi
Import Quotas and voluntary export agreements are often used instead of tariffs. What are the differences? If any, between quotas, voluntary export restrictions (VERs), and tariffs?
For the past ten years, DWI has wanted to develop the lucrative Iraqi oil reserves for its exploration, drilling, refining, and transport division; DWI's Oil Division has been limited to Siberia and the South China Sea up to this date, and was precluded from entry into business in Iraq by United States law and U.N Sanctions.
Online Economics Managerial class using Michael Baye's 5th edition book. You are the manager of a monopoly, and your demand and cost functions are given by P = 200 - 2Q and C(Q) = 2,000 + 3Q2, respectively. a. What price-quantity combination maximizes your firm's profits? b. Calculate the maximum profits. c. Is
1. The following information is taken from the financial statements of Universal Fertilizers, Inc. for it fiscal year ended December 31, 2004: Debt $25.0 million Shareholders' Equity 30.0 million Interest expense 1.2 million Times interest earned 3.0x The Company's financial statement footnotes
Subject: Insurance Details: Private health insurers tend to be quite passive in the face of health care cost escalation ? simply passing increased costs forward as increased premiums or back as reduced coverage and larger requirements for patient payment. (Think of Canadian drug insurers.) How would one interpret cost escalati
I want to confirm that my analysis is correct. I have attached the problem and my analysis as two separate attachments. Thank you. The notes that were cut off are as follows: The Dental Practice will be paid on the basis of covered lives. Capitation is the amount of money paid by the HMO to the Dental Practice per cover
Q: Suppose you place an order for ₤56,000 worth of British ale, to be delivered in 3 months. The current $/₤ spot rate is $1.80, and the 3-month forward rate is $1.85. a) Discuss whether you would consider hedging the exchange risk, how you would hedge using a forward contract, and your additional costs or savi
You are long one CME Dec sterling future of contract size £62.500. Mon closing of the future was 1.8212 USD/GBP. On Tues, the price rose to 1.8289; on Wed the price changed to 1.8275. Calculate your profit/loss in USD on Tue and Wed.
The current spot exchange rate is $1.55/£ and the 3M forward rate is $1.50/£. On the basis of your analysis of the exchange rate, you are pretty sure the spot will be $1.52/£ in 3M time. Assume that you'd like to buy or sell £1million. a) what actions do you need to take to speculate in the forward market? What is the exp
HJ, an abitrager with Bank of Montreal, faces the following CAD/USD prices; Spot: CAD 1.49/USD 6M Forward: CAD 1.51/USD 6M CAD interest rate 7.5% per annum 6M USD interest rate 5.0% p.a. H.J is authorized to use CAD20,000,000 or its USD equivalent. The ending profit, if any, should be realized in CAD. How can he complete
Please include in your response, the formulas for this problem, along with a detailed explanation of how it is solved, and your rationale for reaching your conclusions. You are the Vice President of Finance for Daniel's Resources, headquartered in Phoenix, Arizona. In January 2002, your firm's Canadian subsidiary obtain
Q1 a)180-day interest rate is 1% & 3% respectively in the US and Japan spot rate & 180-day forward rate are equivalent= 120 yen per one US dollar As a trader of a commercial bank how would I invest $1 million and earn risk free return by engaging in covered interest arbitage. b)inflation rate in US and Japan & Japan res
EBay claims that it has only a small problem with fraud and misuse of the system. Does this imply that it is overinvesting in addressing potential contracting problems? Underinvesting? Explain. See attached file for full problem description.
This is how I answered this question. What are the differences among horizontal, vertical, and conglomerate mergers? Is one type preferable from the view of anti-trust policy? A horizontal merger occurs when firms selling substitutable goods within the same geographical market or overlapping geographical markets join
Please see the attached file for full problem description. --- P2-4A A review of the ledger of Greenberg Company at December 31, 2002, produces the following data pertaining to the preparation of annual adjusting entries. 1. Salaries Payable $0. There are eight salaried employees. Salaries are paid every Friday for the curr
Visit the website for the U.S. Federal Trade Commission (http://www.ftc.gov/)to get the facts on the most recent price fixing cases. Click on the Search icon, and do a search of News Releases using the words "price fixing." Write a description of a recent price-fixing case.
In a hypothetial society, the government has decided to right the historic wrongs done to vertically challenged (ie short) people. Part of the program involves subsidizing the purchase of stilts by short people. Specifically, each pair of stilts purchased by a short person recieves a subsidy of S percent. To finance this subs
What is the actuarilly fair premium for full coverage for a treatment. Find the utility with full insurance for the treatment and how much would the individual be willing to pay to obtain such insurance than the fair premium (calculate the risk premium)? Utility function is given by U=10(X1/3) CUrrent income is 64000, 1
The article argues that, ``the rigidity of the currency board made it difficult to respond to these shocks." You should think of the currency board simply as a fixed exchange rate regime.
Global Economic Environment of the Firm Macro Economics Monetary Policy and Exchange Rate Regimes The questions should be answered using Macro Economic arguments using graduate level thinking. Please pay attention to the questions asked. More detail, the better. Questions: The article argues that, ``the rigidity of the c