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OLEGan [10]
3 years ago
13

The open-economy macroeconomic model examines the determination of a. unemployment and the exchange rate. b. the output growth r

ate and the real interest rate. c. the trade balance and the exchange rate. d. the output growth rate and the inflation rate.
Business
1 answer:
Andrei [34K]3 years ago
3 0

Answer:

c. the trade balance and the exchange rate.

Explanation:

An Open Economy is an economy that allows the free inflow and outflow of goods, services, capital and people. The opposite of a closed economy.

What sets these two models apart is that in an open economy, both imports and exports are allowed, so that countries necessarily have to trade in more than one currency, so the exchange rate must be examined. In addition, business transactions are recorded in a balance of payments. So these are the two concepts that are not tried in a closed economy analysis, but are introduced in an open economy.

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Answer:

b. Each decision variable must be non-negative in the optimal solution.

Explanation:

This constraint or restriction states that x11, x12, x21, and x22 all must be at least 0 or greater. in other words, they cannot be negative numbers. If the restriction had been > (greater than), then it would mean that all the variables must be positive numbers. But since it is ≥ (greater than or equal to), 0 is a valid option.

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You want to invest an amount of money today and receive back twice that amount in the future. You expect to earn 9 percent inter
Virty [35]

Answer:

The answer is 8 years

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FV= PV(1+r)^n

Where

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FV = Since FV will be doubled, the we have $200($100 x 2)

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Let us use the rule of 72 which states that an investment will double when:

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5 0
3 years ago
Who is the government attempting to help by enforcing fraud laws?
Naddika [18.5K]

Answer:

B. Consumers

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The following is a free response question released by the College Board from a previous AP exam to be used as practice for futur
astraxan [27]

<u>Solution and Explanation:</u>

(a). Firm in perfect competition produces at minimum efficient scale, MEC where average cost AC is minimum. The price is determined by the market supply and demand.

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(c) All firms in monopolistically competitive market as well as perfectly competitive market earn zero economic profit in the long run. This is because there is a free entry and exit

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