NHE data for selected calendar years between 1970 and 2003

  Examine the trends in expenditures for the service categories presented in the table. What is the magnitude and direction of spending changes within and across each of these categories: the percentage of GDP spent on NHE and the NHE per capita. What can you say...

Swiss franc’s exchange rate against the Russian ruble

  1. Suppose Russia’s inflation rate is 100 percent over one year but the inflation rate in Switzerland is only 5 percent. According to relative PPP, what should happen over the year to the Swiss franc’s exchange rate against the Russian ruble?...

Bolivia experienced hyper-inflation

In 1984 and 1985, the small Latin Amencan country of Bolivia experienced hyper-inflation. Below are some key macroeconomic data from those years: a. Do the money supply, price level, and exchange rate against the U.S. dollar move broadly as you would expect? Explain....

Global Economics Discussion

        You are the CFO of a U.S. firm whose wholly owned subsidiary in Mexico manufactures component parts for your U.S. assembly operations. The subsidiary has been financed by bank borrowings in the United States. One of your analysts told you...

Forecasting

  This week, we learned about the importance of forecasting future sales and profit for companies. Of course, there are many factors which can affect the reliability of these forecasts, such as interest rate fluctuations, competitive innovations, new customers,...