What problems arise from the CPI bias?
> On March 30, 2012, the U.S. dollar was trading at 82 yen per U.S. dollar on the foreign exchange market. On August 30, 2012, the U.S. dollar was trading at 79 yen per U.S. dollar. a. What events in the foreign exchange market could have brought this fall
> How are net exports and the government sector balance linked?
> What are the transactions that the balance of payments accounts record?
> How has China operated in the foreign exchange market, why, and with what effect?
> What is a crawling peg and how does it work?
> Statistics Canada reported the following data for 2013: Labour force:………………………… 19.4 million Employment:………………………… 18.0 million Working-age population:……….. 26.7 million Calculate the: a. Unemployment rate. b. Labour force participation rate. c. Employme
> What is a fixed exchange rate and how is its value fixed?
> What determines the real exchange rate and the nominal exchange rate in the long run?
> What determines the real exchange rate and the nominal exchange rate in the short run?
> What is purchasing power parity and what happens when this condition doesn’t hold?
> What is interest rate parity and what happens when this condition doesn’t hold?
> What is arbitrage and what are its effects in the foreign exchange market?
> What makes the supply of Canadian dollars change?
> What makes the demand for Canadian dollars change?
> What happens if there is a shortage or a surplus of Canadian dollars in the foreign exchange market?
> Answer the following questions. a. What happened to the foreign exchange value of the U.S. dollar in July and August 2014? b. What could the Bank of Canada have done to stop the fall in the Canadian dollar? c. What could the European Central Bank have do
> Labour force participation rate: 67.4 percent Working-age population: 29.0 million Employment-to-population ratio: 62.5 Calculate the: a. Labour force. b. Employment. c. Unemployment rate.
> The Australian dollar fell against the U.S. dollar to its lowest value in the past two weeks. The CPI inflation rate was reported to be generally as expected but not high enough to justify previous expectations for an aggressive interest rate rise by Aus
> In 2007, the U.S. trade deficit with China hit $256.3 billion, the largest deficit ever recorded with a single country. Chinese currency, the yuan, has risen in value by 18.4 percent against the U.S. dollar since the Chinese government loosened its curre
> In 2007, the U.S. trade deficit with China hit $256.3 billion, the largest deficit ever recorded with a single country. Chinese currency, the yuan, has risen in value by 18.4 percent against the U.S. dollar since the Chinese government loosened its curre
> In 2007, the U.S. trade deficit with China hit $256.3 billion, the largest deficit ever recorded with a single country. Chinese currency, the yuan, has risen in value by 18.4 percent against the U.S. dollar since the Chinese government loosened its curre
> The Economist magazine uses the price of a Big Mac to determine whether a currency is undervalued or overvalued. In July 2012, the price of a Big Mac was $4.33 in New York, 15.65 yuan in Beijing, and 6.50 Swiss francs in Geneva. The exchange rates were 6
> The Brazilian real has appreciated 33 percent against the U.S. dollar and has pushed up the price of a Big Mac in Sao Paulo to $4.60, higher than the New York price of $3.99. Despite Brazil’s interest rate being at 8.75 percent a year compared to the U.S
> The Brazilian real has appreciated 33 percent against the U.S. dollar and has pushed up the price of a Big Mac in Sao Paulo to $4.60, higher than the New York price of $3.99. Despite Brazil’s interest rate being at 8.75 percent a year compared to the U.S
> Indian Entrepreneur Seeks Opportunities Rahul Reddy, an Indian real estate entrepreneur, believes that “The United States is good for speculative higher-risk investments.” He profited from earlier investment in Australia, and a strong Australian dollar p
> Indian Entrepreneur Seeks Opportunities Rahul Reddy, an Indian real estate entrepreneur, believes that “The United States is good for speculative higher-risk investments.” He profited from earlier investment in Australia, and a strong Australian dollar p
> Canada produces natural resources (coal, natural gas, and others), the demand for which has increased rapidly as China and other emerging economies expand. a. Explain how growth in the demand for Canada’s natural resources would affect the demand for Can
> What is the unemployment rate supposed to measure and why is it an imperfect measure?
> In 2011, the exchange rate changed from 94 yen per U.S. dollar in January to 84 yen per U.S. dollar in June, and back to 94 yen per dollar in December. What information would you need to determine the factors that caused these changes in the exchange rat
> Yesterday, the current exchange rate was $1.05 Canadian per U.S. dollar and traders expected the exchange rate to remain unchanged for the next month. Today, with new information, traders now expect the exchange rate next month to fall to $1 Canadian per
> Today’s exchange rate between the yuan and the U.S. dollar is 6.40 yuan per dollar, and the central bank of China is buying U.S. dollars in the foreign exchange market. If the central bank of China did not purchase U.S. dollars would there be excess dema
> In Problem 5, the banks have no excess reserves. Suppose that the central bank in Nocoin increases bank reserves by $0.5 billion. a. Explain what happens to the quantity of money and why the change in the quantity of money is not equal to the change in t
> In year 1, the economy is at full employment and real GDP is $400 million, the GDP deflator is 200 (the price level is 2), and the velocity of circulation is 20. In year 2, the quantity of money increases by 20 percent. If the quantity theory of money ho
> The spreadsheet provides data about the demand for money in Minland. Columns A and B show the demand for money schedule when real GDP ( Y 0 ) is $10 billion, and Columns A and C show the demand for money schedule when real GDP ( Y 1 ) is $20 billion. The
> In the economy of Nocoin, bank deposits are $300 billion, bank reserves are $15 billion of which two-thirds are deposits with the central bank. Households and firms hold $30 billion in bank notes. There are no coins. Calculate: a. The monetary base and q
> The Bank of Canada sells $20 million of securities to the Bank of Nova Scotia. Enter the transactions that take place to show the changes in the following balance sheets: Bank of Canada Aasta mlona LUabilmen (mlona Bank of Nova Scatta Assets Labilti
> Europe’s Banks Must Be Forced to Recapitalize E.U. banks must hold more capital. Where private funding is not forthcoming, recapitalization must be imposed by E.U. governments. What is the “capital” referred to in the news clip? How might the requirement
> In July 2011, currency held by individuals and businesses was $57 billion; chequable deposits owned by individuals were $211 billion and owned by businesses were $277 billion; nonchequable personal deposits were $163 billion; non-chequable business depos
> What are the alternative measures of the price level and how do they address the problem of bias in the CPI?
> How does a change in the supply of money change the interest rate in the long run?
> How does a change in the supply of money change the interest rate in the short run?
> Show the effects of a change in the nominal interest rate and a change in real GDP using the demand for money curve.
> What are the main influences on the quantity of real money that people and businesses plan to hold?
> How do banks create money?
> How does an open market operation change the monetary base?
> What is the central bank in Canada and what functions does it perform?
> How have depository institutions made innovations that have influenced the composition of money?
> How do depository institutions create liquidity, pool risks, and lower the cost of borrowing?
> How do depository institutions balance risk and return?
> What distinguishes an unemployed person from one who is not in the labour force?
> Congress has amended the Copyright Act several times. Copyright holders now have protection for many decades. Was Congress justified in extending the copyright time periods? Why or why not?
> Some argue that if online retailers are required to collect and pay sales taxes in jurisdictions in which they have no physical presence, they have no democratic way to fight high taxes in those places. Is this an instance of taxation without representat
> What are some steps that businesspersons can take to avoid issues at the border with respect to the contents of their electronic devices?
> Instagram’s current terms of service state, “We may not always identify paid services, sponsored content, or commercial communications as such.” Is it ethical for Instagram to post advertisements without identifying them as advertisements? Discuss.
> So far, victims of catfishing have had little success in the courts. Under what circumstances might a person be able to collect damages for fraudulent misrepresentation involving online impersonation?
> How can a company structure e-mail negotiations to avoid “accidentally” forming a contract?
> Valuable company resources are used to create and publish corporate social responsibility reports. Under what circumstances can a corporation justify such expenditures?
> Online companies such as Amazon not only target individual customers but also utilize each customer’s buying habits to create generalized marketing campaigns. Might any privacy issues arise as an online company creates a database to be used for generaliz
> From an ethical point of view, is there any difference between calling subordinates during off hours for work-related questions and sending them e-mails or text messages?
> James, Chang, and Sixta are roommates. They are music fans and frequently listen to the same artists and songs. They regularly exchange MP3 music files that contain songs from their favorite artists. 1. One group of students will decide whether the fact
> After years of research, your company has developed a product that might revolutionize the green (environmentally conscious) building industry. The product is made from relatively inexpensive and widely available materials combined in a unique way that c
> Go to Appendix G at the end of this text and examine the excerpt of Case No. 1, Winstead v. Jackson. Review and then brief the case, making sure that your brief answers the following questions. 1. Issue: This case focused on an allegation of copyright i
> How could the “right to be forgotten” affect free speech?
> The U.S. Patent and Trademark Office requires that a registered trademark or service mark be put into commercial use within three years after the application has been approved. Why do you think the federal government established this requirement?
> What options do textbook publishers face given this Supreme Court decision?
> Some argue that the best way to stop patent trolls from taking advantage of the system would be to eliminate software patents completely and pass a law that makes software unpatentable. Would this be fair to software and technology companies? Why or why
> Two computer science majors, Trent and Xavier, have an idea for a new video game, which they propose to call “Hallowed.” They form a business and begin developing their idea. Several months later, Trent and Xavier run into a problem with their design and
> Amy Kemper was seriously injured when her motorcycle was struck by a vehicle driven by Christopher Brown. Kemper’s attorney wrote to Statewide Claims Services, the administrator for Brown’s insurer, asking for “all the insurance money that Mr. Brown had
> Judy Olsen, Kristy Johnston, and their mother, Joyce Johnston, owned seventy-eight acres of real property on Eagle Creek in Meagher County, Montana. When Joyce died, she left her interest in the property to Kristy. Kristy wrote to Judy, offering to buy J
> earwire Corp. Clearwire sent her a confirmation e-mail that included a link to its Web site. Clearwire also sent her a modem. In the enclosed written materials, at the bottom of a page, in small type was the Web site URL. When Reasonover plugged in the m
> The Baton Rouge Crime Stoppers (BCS) offered a reward for information about the “South Louisiana Serial Killer.” The information was to be provided via a hotline. Dianne Alexander had survived an attack by a person suspected of being the killer. She iden
> TracFone Wireless, Inc., sells phones and wireless service. The phones are sold for less than their cost, and TracFone recoups this loss by selling prepaid airtime for their use on its network. Software in the phones prohibits their use on other networks
> Ball writes to Sullivan and inquires how much Sullivan is asking for a specific forty-acre tract of land Sullivan owns. Ball then receives a letter from Sullivan stating, “I will not take less than $60,000 for the forty-acre tract as specified.” Ball imm
> International Business Machines Corp. (IBM) hired Niels Jensen as a software sales representative. According to the brochure on IBM’s “Sales Incentive Plan” (SIP), “the more you sell, the more earnings for you.” The brochure also stated that “the SIP pro
> Lawrence M. Clarke, Inc., was the general contractor for construction of a portion of a sanitary sewer system in Billings, Michigan. Clarke accepted Kim Draeger’s proposal to do the work for a certain price. Draeger arranged with two subcontractors to wo
> Ralph Ramsey insured his car with Allstate Insurance Co. He also owned a house on which he maintained a homeowner’s insurance policy with Allstate. Bank of America had a mortgage on the house and paid the insurance premiums on the homeowner’s policy from
> Robert Gutkowski, a sports marketing expert, met with George Steinbrenner, the owner of the New York Yankees, many times to discuss the Yankees Entertainment and Sports Network (YES). Gutkowski was paid as a consultant. Later, he filed a suit, seeking an
> Kim Panenka asked to borrow $4,750 from her sister, Kris, to make a mortgage payment. Kris deposited a check for that amount into Kim’s bank account. Hours later, Kim asked to borrow another $1,100. Kris took a cash advance on her credit card and deposit
> Thomas Rinks and Joseph Shields developed Psycho Chihuahua, a caricature of a Chihuahua dog with a “do-not-back-down” attitude. They promoted and marketed the character through their company, Wrench, LLC. Ed Alfaro and Rudy Pollak, representatives of Tac
> For employment with the Firestorm Smokejumpers—a crew of elite paratroopers who parachute into dangerous situations to fight fires—applicants must complete a series of tests. The crew chief sends the most qualified applicants a letter stating that they w
> Janine was hospitalized with severe abdominal pain and placed in an intensive care unit. Her doctor told hospital personnel to order around-the-clock nursing care for Janine. At the hospital’s request, a nursing services firm, Nursing Services Unlimited,
> Rocky Mountain Races, Inc., sponsors the “Pioneer Trail Ultramarathon,” with an advertised first prize of $10,000. The rules require the competitors to run 100 miles from the floor of Blackwater Canyon to the top of Pinnacle Mountain. The rules also prov
> Best Buy, a national electronics retailer, offered a credit card that allowed users to earn “reward points” that could be redeemed for discounts on Best Buy goods. After reading a newspaper advertisement for the card, Gary Davis applied for, and was give
> Operating out of an apartment in Secane, Pennsylvania, Hratch Ilanjian convinced Vicken Setrakian, the president of Kenset Corp., that he was an international businessman who could help Kenset turn around its business in the Middle East. At Ilanjian’s in
> Stephen Glass made himself infamous as a dishonest journalist by fabricating material for more than forty articles for The New Republic magazine and other publications. He also fabricated supporting materials to delude The New Republic’s fact checkers. A
> Mark Ramun worked as a manager for Allied Erecting and Dismantling Co., where he had a tense relationship with his father, who was Allied’s president. After more than ten years, Mark left Allied, taking 15,000 pages of Allied’s documents on DVDs and CDs,
> Facebook, Inc., launched a program called “Beacon” that automatically updated the profiles of users on Facebook’s social networking site when those users had any activity on Beacon “partner” sites. For example, one partner site was Blockbuster.com. When
> Methamphetamine (meth) is an addictive drug made chiefly in small toxic labs (STLs) in homes, tents, barns, and hotel rooms. The manufacturing process is dangerous, often resulting in explosions, burns, and toxic fumes. Government entities spend time and
> Internet giant Zoidle, a U.S. company, generated sales of £2.5 billion in the United Kingdom in 2013 (approximately $4 billion in U.S. dollars). Its net profits before taxes on these sales were £200 million, and it paid £6 million in corporate tax, resul
> Jason Trevor owns a commercial bakery in Blakely, Georgia, that produces a variety of goods sold in grocery stores. Trevor is required by law to perform internal tests on food produced at his plant to check for contamination. On three occasions, tests of
> Gary Peters fraudulently told an undocumented immigrant that Peters could help him obtain lawful status. Peters said that he knew immigration officials and asked for money to aid the process. The victim paid Peters at least $25,000 in wire transfers and
> George Castro told Ambrosio Medrano that a bribe to a certain corrupt Los Angeles County official would buy a contract with the county hospitals. To share in the deal, Medrano recruited Gustavo Buenrostro. In turn, Buenrostro contacted his friend James B
> Matthew Simpson and others created and operated a series of corporate entities to defraud telecommunications companies, creditors, credit reporting agencies, and others. Through these entities, Simpson and his confederates used routing codes and spoofing
> During the morning rush hour, David Green threw bottles and plates from a twenty-sixth-floor hotel balcony overlooking Seventh Avenue in New York City. A video of the incident also showed him doing cartwheels while holding a beer bottle and sprinting tow
> Jacqueline Barden was shopping for school clothes with her children when her purse and automobile were taken. In Barden’s purse were her car keys, credit and debit cards for herself and her children, as well as the children’s Social Security cards and bi
> Charles Byrd was in a minimum-security county jail awaiting trial. A team of sheriff’s deputies wearing T-shirts and jeans took Byrd and several other inmates into a room for a strip search without any apparent justification. Byrd was ordered to remove a
> Custom Copies, Inc., prepares and sells coursepacks, which contain compilations of readings for college courses. A teacher selects the readings and delivers a syllabus to the copy shop, which obtains the materials from a library, copies them, and binds t
> Rodney Klassen was employed by the U.S. Department of Agriculture (USDA). Without the USDA’s authorization, Klassen gave Jim Ludy, a grape grower, plant material for two unreleased varieties of grapes. For almost two years, most of Ludy’s plantings bore
> The U.S. Patent and Trademark Office (PTO) denied Raymond Gianelli’s application for a patent for a “Rowing Machine”—an exercise machine on which a user pulls on handles to perform a rowing motion against a selected resistance. The PTO considered the dev
> SilverEdge Systems Software hired Catherine Conrad to perform a singing telegram. SilverEdge arranged for James Bendewald to record Conrad’s performance of her copyrighted song to post on the company’s Web site. Conrad agreed to wear a microphone to assi
