Reference no: EM131438139
A) The role of money demand is very important in the so-called "MonetaryApproach" to the determination of interest rates. Briefly discuss how the following three considerations influence individual demands for money: i) expected returns relative to other assets, ii) the riskiness of the money as an asset, iii)liquidity.
B) Explain the concept of a "real exchange rate" and discuss how this variable would be expected to change, 1) in the case of a relative change in demand for one trading partner's output, 2) in the case of a relative change in supply of one trading partner's output.
C) Using a diagram, illustrate and briefly explain the phenomenum of exchange rate overshooting. What empirical fact does this theory offer an explanation for?
D) Briefly discuss the effects on the exchange rate of an increase in the domestic interest rate according to both the "asset market approach" and to the"monetary approach". What are the predictions of the two models? Are the two predictions in agreement? If not, how can the two predictions be reconciled?
E) Using a diagram, illustrate and briefly explain the short-run effects of a temporary contraction of the domestic money supply on the simultaneous equilibrium of the domestic money market and the foreign exchange market.
F) Using a diagram, illustrate and briefly explain the long-run effects of a permanent contraction of the domestic money supply on the simultaneous equilibrium of the domestic money market and the foreign exchange market.
|
British government imposed a poll tax
: About 30 years ago British Government imposed a poll tax that required each person to pay a flat amount to the government independent of his or her income or wealth.What is the effect of such tax on economic efficiency?What is the effect on econom..
|
|
Relationships between scores and additional spending
: For each school, the average score on a standardized achievement test depends on how many dollars are allocated to the school. Letting S denote the average test score and X denote additional spending in millions of dollars, the relationships betwe..
|
|
How the change affected the human resources function
: The purpose of this assignment is to display lessons learned about designing a change management plan and the implications for performance management promoting a high performance work environment.In this assignment, you will apply lessons learned..
|
|
What changes might an adult educator need to make
: What changes might an adult educator need to make to prepare for the increasing use of technology in adult education?
|
|
Explain the concept of a real exchange rate
: Explain the concept of a "real exchange rate" and discuss how this variable would be expected to change, 1) in the case of a relative change in demand for one trading partner's output, 2) in the case of a relative change in supply of one trading p..
|
|
Analyze culturally competent health and human services
: According to the National Organization for Human Services (n.d.), the human services field involves "...meeting human needs through an interdisciplinary knowledge base, focusing, on prevention as well remediation of problems, and maintaining a co..
|
|
Issue of physician misdistribution and imbalance
: Explain the issue of physician misdistribution and imbalance. What measures can be employed to overcome this problem?
|
|
How you would utilize the positive psychology approach
: Imagine that you are a human services professional working with a client facing a challenge or situation.. Choose the challenge or situation that this client might face and summarize the presenting challenge(s) and needs. Conidering the challenge..
|
|
What evidence do you have from speech about robert kennedy
: What evidence do you have from this speech about Robert Kennedy's standpoint? How would you describe his standpoint? Is it ethnocentric? Explain.
|