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how would you draw the dd-aa diagram when the current accounts response to exchange rate changes follows a j-curve use
what does the marshall-lerner condition look like if the country whose real exchange rate changes does not start out
suppose that interest parity does not hold exactly but that the true relationship is r r ee - ee r where r is a term
during the passage of the us scal stimulus bill of february 2009 many members of congress demanded buy american clauses
in the late 1970s britain seemed to have struck it rich having developed its north sea oil-producing elds in earlier
1 explain how permanent shifts in national real money demand functions affect real and nominal exchange rates in the
1 explain how the nominal dollareuro exchange rate would be affected all else equal by permanent changes in the
in the short run of a model with sticky prices a reduction in the money supply raises the nominal interest rate and
continuing with the preceding problem we can dene short- and long-term real rates of interest in all cases the relevant
why might it be true that relative ppp holds better in the long run than the short run think about how international
how would you expect a fall in a countrys population to alter its aggregate money demand function would it matter if
the velocity of money v is dened as the ratio of real gnp to real money holdings v ymp in this chapters notation use
imagine that the central bank of an economy with unemployment doubles its money supply in the long run full employment
what would be the real rates of return on the assets in the preceding question if the price changes described were
we noted that we could have developed our diagrammatic analysis of foreign ex- change market equilibrium from the
the following report appeared in the new york times on august 7 1989 dollars strength a surprise p d1but now the
does any of the discussion in this chapter lead you to believe that dollar deposits may have liquidity characteristics
imagine that everyone in the world pays a tax of t percent on interest earnings and on any capital gains due to
explain how each of the following transactions generates two entries-a credit and a debit-in the american balance of
the nation of pecunia had a current account decit of 1 billion and a nonreserve nancial account surplus of 500 million
a new yorker travels to new jersey to buy a 100 telephone answering machine the new jersey company that sells the
if you go to the bea website httpwwwbeagov and look at the survey of current business for july 2010 the table on us
1 what are the disadvantages of engaging in strategic trade policy even in cases in which it can be shown to yield an
1 what are the key assumptions that allow strategic trade policy to work in the brander- spencer example of airbus and
1 what is the main critique against the wto with respect to environmental protection how does the wto justify its