Reference no: EM133469714
Questions
1. What are the predicted policy preferences for exchange rate policy and monetary policy, according to the partisan model, for:
A wealthy farmer that grows wheat for export
Partisan Model
a. Fixed exchange rate with weak currency and no monetary autonomy
b. Fixed exchange rate with strong currency and monetary autonomy
c. Floating exchange rate with weak currency and full monetary autonomy
d. Fixed exchange rate with strong currency and no monetary autonomy
e. Floating exchange rate and expansionary monetary policies
f. Floating exchange rate with strong currency and full monetary autonomy
g. Fixed exchange rate and restrictive monetary policies
2. What are the predicted policy preferences for exchange rate policy and monetary policy, according to the partisan model, for:
A wealthy farmer that grows wheat for export
Sectoral Model
a. Fixed exchange rate with weak currency and no monetary autonomy
b. Fixed exchange rate with strong currency and monetary autonomy
c. Floating exchange rate with weak currency and full monetary autonomy
d. Fixed exchange rate with strong currency and no monetary autonomy
e. Floating exchange rate and expansionary monetary policies
f. Floating exchange rate with strong currency and full monetary autonomy
g. Fixed exchange rate and restrictive monetary policies
3. What are the predicted policy preferences for exchange rate policy and monetary policy, according to the partisan model, for:
A low-income hairdresser
Partisan Model
a. Fixed exchange rate with weak currency and no monetary autonomy
b. Fixed exchange rate with strong currency and monetary autonomy
c. Floating exchange rate with weak currency and full monetary autonomy
d. Fixed exchange rate with strong currency and no monetary autonomy
e. Floating exchange rate and expansionary monetary policies
f. Floating exchange rate with strong currency and full monetary autonomy
g. Fixed exchange rate and restrictive monetary policies
4. What are the predicted policy preferences for exchange rate policy and monetary policy, according to the partisan model, for:
A low-income hairdresser
Sectoral Model
a. Fixed exchange rate with weak currency and no monetary autonomy
b. Fixed exchange rate with strong currency and monetary autonomy
c. Floating exchange rate with weak currency and full monetary autonomy
d. Fixed exchange rate with strong currency and no monetary autonomy
e. Floating exchange rate and expansionary monetary policies
f. Floating exchange rate with strong currency and full monetary autonomy
g. Fixed exchange rate and restrictive monetary policies