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The total excess burden of a tax is an additional cost to the society over and above the amount paid as tax.
Faimus answered the question on February 25, 2019 at 19:00
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How does tax system cause market failure?
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What is meant by asymmetric information?
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- Consider the following data Date Exchange rate January 2017 EURUSD 1.100 December 2017 EURUSD 1.144 Take USD as the home currency.(Solved)
a) Consider the following data
Date-----Exchange rate
January 2017----EURUSD 1.100
December 2017----EURUSD 1.144
Take USD as the home currency.
According to purchasing power parity which currency area should have had the higher rate of inflation by 2017 and by how much?
b) If inflation in the USD were 3% higher than the EURO area, calculate the change in the real value of the dollar .what is the implication of this change?
C) What is the implication of a change in real exchange rate of a currency?
d)
Explain why you would expect interest rates in the US to be higher than in the EURO area.
e) Explain why you would expect there to be no difference in the interest rates of a government bond of any two countries in the euro area and also explain why in practice there are differences.
Date posted: February 16, 2019. Answers (1)
- a) Calculate to 4 decimal place the new exchange rate after a 2% increase in the value of the dollar given an exchange rate of...(Solved)
a) Calculate to 4 decimal place the new exchange rate after a 2% increase in the value of the dollar given an exchange rate of EURUSD 1.1 .
b) Given the following exchange rate, calculate the GBPEUR rate to 4 decimal places.
EURUSD 1.1043
GBPUSD 1.2970
c) Explain the relationship between your answer above and triangular arbitrage.
Date posted: February 16, 2019. Answers (1)
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(Solved)
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Date posted: February 16, 2019. Answers (1)
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Different types of elasticity with examples.
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What is income elasticity of demand?
Date posted: January 16, 2019. Answers (1)
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Price elasticity of demand coefficient can be interpreted in several ways. Briefly explain them.
Date posted: January 16, 2019. Answers (1)
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Differentiate between point and arc elasticity of demand.
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Date posted: January 16, 2019. Answers (1)