Under a fixed exchange rate system, the government bears the responsibility to ensure that the bop is near zero. if the sum of the current and capital accounts do not approximate zero, the government is expected to intervene in the foreign exchange market by buying or selling official foreign exchange reserves. if the sum of the first two accounts is greater than zero, a demand for the domestic currency exists in the world. to preserve the fixed exchange rate, the government must then intervene in the foreign exchange market and domestic currency for foreign currencies or gold so as to bring the bop back near zero.

The new york stock exchange is an example of physical or individual

There are more than two types of bachelors’ degrees true or false?

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?