1.Holding everything else constant, if the United States produces an additional $1 billion worth of goods which are exported to Canada and Canada produces an additional $2 billion worth of goods which are imported to the US, what is the exact change in GDP for both countries?

2.If the market for loanable funds is currently facing the zero lower bound, can monetary policy reestablish equilibrium in this market, and if so, how?

3.If the money supply rises by 10% while velocity, output and the real interest rate are stable and assuming the nominal market clearing interest rate was 5%, what is the new nominal market clearing interest rate?

4.Assume that all parties involved face an interest rate of 8%.An enterprise can be financed which will generate $10 million in earnings annually forever and with no risk with either the sale of 1% of the equity or by taking on corporate debt with a face value of $1 million, a coupon rate of 10% and ten years to maturity.What is the present value of each?

5.Assuming an upward-sloping marginal cost curve, How do you draw the marginal cost and firm demand curves for a monopolist.Then identify the quantity supplied by a perfectly price discriminating (first degree price discrimination) monopolist and the efficient quantity.