a.)Explain why a stronger dollar could enlarge the U.S. balance of trade deficit. Explain why a weaker dollar could affect the U.S. balance of trade deficit.

b.) It is sometimes suggested that a floating exchange rate will adjust to reduce or eliminate any current account deficit. Explain why this adjustment would occur.

c.) Why does the exchange rate not always adjust to a current account deficit?

Which chart shows the effect of a decrease in income when both video games and e-books are normal goods? (a) A (b) B (d) D 24. Which chart shows the effects of a decrease in income when video games are an Inferior good and e-books are a normal good? A (b) B (c) c (d) D 25. Which chart shows the effects of an increase in the price of video games when video games and e-books are substitutes but not perfect substitutes? (a) A [b) B (c) C D 26. Which chart in the figure shows the effects of an increase in the price of video games when video games and e-books are complements but not perfect complements? A (b) B (c) C (d) DA homeowner installed new kitchen cabinets and countertops for $6,000. He paid 109% down and financed the balance with a 24-month fixed installment loan with an APR of 7.096. Use an annual percentage rate table to determine the total finance charge and monthly payment for the loan. Q A. Total finance charge = $711.60; Monthly payment = $279.65 Q) B. Total finance charge = $402.53; Monthly payment = $241.77 O C. Total finance charge = $670.68; Monthly payment = $252.95 O D. Total finance charge = $402.53; Monthly payment = $483,54Question 41 (2 points) Select the correct statement regarding managerial and financial accounting. O A) Financial accounting is more highly regulated than managerial accounting. ( B) Users of managerial accounting information desire greater aggregation than do users of financial accounting information. O C) Both managerial and financial accounting use economic and physical data in addition to financial data. O D) Timeliness is more important in financial accounting than in managerial accounting. Save1. (a) Explain what is meant by the transition probability matrix of a homogeneous Markov chain. [5 marks] (b) Explain what is meant by the stationary distribution of a Markov chain? [5 marks] (c) A Markov chain has transition probability matrix, A, with entries Ouj; and stationary distribution . Write down an expression for the entries of the reverse Markov chain. [5 marks (d) Consider the following transition probability matrix of a homogo- neous Markov chain, with three states i,j and k (the TPM is in that order). If the stationary vector of the chain is (1/9, 2/9, 2/3), determine whether the Markov chain is reversible. 1 /0.2 0.2 0.6 0.1 0.6 0.3 4 \\0.1 0.1 0.8 [5 marks] (e) Let X1, X2, Xa be a sequence of random variables resulting from the above Markov chain. If X1 = i and Xs = j what is the probability that X2 = k? [5 marks]