# All Questions

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34 views

### Given a demand curve determine the optimal total amount and price of $q_1$ and $q_2$

Given a demand curve for a monopolist $$P(Q) = 120 - 3Q$$ where $Q = q_1 + q_2$ with two fabrics with the following marginal cost $$MC_1(q_1) = 10 + 20q_1 \\ MC_2(q_2) = 60 + 5q_2$$ I have to ...
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### Why does Ricardian Equivalence not hold when there are different borrowing and lending rates on the market?

If you can propose any explanation (intuitive, graphical or algebraic), I will appreciate it
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### How do transactions in different currencies work?

Very basic question but I have not much knowledge in this field so sorry: Say I have a bank account and over the past year there were transactions in different currencies. I am guessing that a ...
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### Why does a loose Fed policy reduce the downward pressure on the currencies of emerging markets?

To start off, my background is not in economics but in Computer Science. I recently read in the Economist that a looser Fed policy removes downward pressure on the currencies of emerging markets. Is ...
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### Positive productivity shock with a fall in output

I am modeling a two-country world. Within each country there exists a representative infinitely-lived agent, a representative final good producer, a continuum of domestic monopolistic competitive ...
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### How do I convert change over a ten-year period into annual growth rate?

I am working on an econometrics project where I need to find the impact of climate change on agriculture in India. The project requires me to use an existing econometric model from some peer reviewed ...
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### What happens if you cannot lend more than what you have?

This is hypothetical but what would happen if you cannot lend more money than you have? Say you have £100, the maximum you can lend is £100. But somehow you lend £200 to Joe, and Joe spends all of it ...
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### What caused “excess liquidity” in equity market, when CPI was deflationary at the same time period, which caused 'market crash in 1929' in USA?

To begin with, my question is NOT about the reasons of "the great depression" or "market crash" which led to the great depression. Rather, my question is about the reasons for the 'excessive cash ...
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### Inequality and recessions

I was reading about Marx's Crisis Theory. On one hand, there is this idea of the falling surplus. But on the other hand, he relates income inequality to the business cycle. Have his ideas regarding ...
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### How does interest rates impact investment

How does a decrease in interest rates decrease investment rates? This is how I believe a liquidity trap works, not sure if it is correct. Thank you
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### Why can goods be reallocated when there is market failure?

Hanley, Shogren, and White (2007) states that "A market failure occurs when the market does not allocate scarce resources to generate the greatest social welfare. A wedge exists between what a private ...
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### Necessary Goods, Price Elasticity, Long-Term Calculations

My question is a conceptual one, though it arose from a concrete calculation that I'm working on. I'm looking at the economic viability of thermal retrofits, and this author suggests including the ...
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### Are remittances included in the calculation of GNP?

GNP is defined as value of final products and services produced by the residents of a country. As per this definition, it seems remittances won't be included in a country's GNP but it would reflect in ...
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### FDI, FPI relation with interest rates

I understand how a rise in interest rate might lead to an inflow of capital into debt securities, however wouldnt these Foreign Portfolio Investments (FPI) remove their funds from equity. And for ...