4. A country has a fixed exchange rate and capital is very mobile. Because it is experiencing high unemployment, the central bank increases the money supply. Using symbols and words, explain what will happen to (a) internal balance; (b) external balance; (c) the country's exchange rate. How must the central bank respond if it wishes to maintain the fixed exchange rate? Why is monetary policy said to be ineffective with fixed exchange rates and capital mobility? 5. In the example above (#4), the government decides to increase spending on public works to create jobs. How does this affect internal and external balance and the exchange rate? Why is fiscal policy said to be effective with fixed exchange rates and capital mobility?

Imagine you are the mayor of a town and you are trying to decide if you should pay for a fireworks show. Your staff survey your 400 citizens who say that they each value a fireworks show at $10. The fireworks show only costs $3,000 so you put on the show but when you ask for donations to pay for the fireworks you only receive $25 total. What does this result show? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. You staff's survey must have overestimated the value of a fireworks show. b The fireworks cost must have been greater than their economic benefit. The firework show suffered from the Tragedy of the Commons problems d The town's citizens were free-riders.

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Why do people share content via social media channels? They find it interesting and/or entertaining. They think it can be helpful to others. They want to get a laugh. A & B Only. All of these.

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Number 34

What do you consider the most important issue in your community?