Exchange rate between the domestic economy

Assignment Help International Economics

Reference no: EM1367543

Following are parameters for an open economy open economy where C=10+.8(y-T); I=10 G=10 T=10 and imports and exports are given by IM=.3Y and X=.3Y* respectively where Y is foreign output.

Provide an equation that resolves to the lowest level. Given Y*. What is the mulipier effect of this open economy?

Explain the behavior of the IS and LM curves and nominal interest rate in the domestic economy, and then to the exchange rate between the domestic economy.

Reference no: EM1367543

Questions Cloud

Find out the magnitude and direction of the electric field : State the maximum height in terms of a, t_1, and/or g. Note that in this problem, g is a positive number equal to the magnitude of the acceleration due to gravity.

Describe ambiguity in proposed algorithm : Describe the distinction between an ambiguity in a proposed algorithm and an ambiguity in the representation of an algorithm. Describe how the use of primitives helps remove ambiguities in an algorithm's representation.

Effective nurse educator-traits to use evaluation process : Can you describe an example of how he or she facilitated your learning? These are traits to use in the evaluation process.

Illustrate percentage does equilibrium cost level differ : Illustrate what percentage does equilibrium cost level differ from its initial value if output increases to Y = 106 (and r remains at 0.10).

Exchange rate between the domestic economy : Following are parameters for an open economy open economy where C=10+.8(y-T); I=10 G=10 T=10 and imports and exports are given by IM=.3Y and X=.3Y* respectively where Y is foreign output.

What is the resulting compression force on the earth : A diver 22m deep in 12°C fresh water exhales a 0.8 cm diameter bubble. What is the bubble's diameter just as it reaches the surface of the lake, where the water temperature is 25°C? Hint: suppose that the air bubble is always in thermal equilibriu..

Find boat that completes round-trip first wins : Two boats start together and race across a 56km wide lake and back. Boat A goes across at 56 km/h and returns at 56km/h. Boat B goes across at 28km/h, and its crew, realize how far behind it is getting.

Determine exchange rate : ssume under a system of flexible exchange rates a black and white TV rates $150 in the United State and 18,600 yen in Japan. Other things being equal,

What are some strengths and weaknesses of hdi : Why is an understanding of Illustrate what development means crucial to policy formulation in developing nations. Why do you think a nation may have difficulties in agreeing on a rough definition of development.

User Account

All Pages