Reference no: EM13937593
Assessment 1:
Note: This is a group assessment. In any group maximum of 3 members are allowed. In mentioned cases provide a neat diagram to explain your answer. Make sure to label axes properly. Else points will be deducted.
1. The following excerpt is from the case study "The Euro in crisis: Decision Time at the European Central Bank". (Distributed in the class)
"......a bailout for Greece would send a signal to other indebted member states that the ECB would step in if private lenders become nervous."
Answer the following questions with appropriate diagram and using AD-AS model, Money market, aggregate expenditure model, and forex market (as required). For part a, b and c appropriate diagrams are MUST. Else points will be deducted.
a. When ECB went out for bail out then what was expected to happen to the interest rate in Greece?
b. Comment on the expected outcome of this policy on behalf of ECB. Provide diagram and detailed explanation on output and prices.
c. If government of Greece also increases (assume) the expenditure (expansionary fiscal policy) then what do you think can potentially happen to prices? Provide the relevant diagram and explain your answer.
d. Overall do you think that bail out of Greece is healthy policy from the perspective of ECB? Answer this one in context of the Case study.
e. Explain why a group of economist thinks that a common currency like Euro for the region is not a good idea. Restrict your answer to the concepts discussed in the class and the case study. Page limit is one page.
Assessment 2:
Note: This is a group assessment. In any group maximum of 3 members are allowed. In mentioned cases provide a neat diagram to explain your answer. Make sure to label axes properly. Else points will be deducted.
1. The following information is from International Business Times(April 4, 2012)
"China has reacted to U.S. QE in the past by expressing dismay, primarily given the overweight U.S. dollar position in their foreign currency reserves."
(Source: https://www.ibtimes.com/exnet/chinese-reaction-fed-qe3-not-happy-797141 )
Explain the dismay of Chinese government due to quantitative easing (QE) using the FOREX market model discussed in the class. Make sure that you consider the undervalued exchange rate of China while answering the question. Provide neat diagram (s) to explain your answer.
2. Let's assume the following information for an economy.
C=10000+0.6Y
I=2000
G=5000
X=600
M=400
[All the notations are standard as discussed in the class]
a. Find the size of the multiplier in this economy.
b. Find the short run equilibrium output.
3. The following news was issued in Bloomberg.
"Thailand's baht fell for a second week to reach the lowest level since 2010 and the benchmark stock index led losses in Southeast Asia on concern worsening political unrest will spur further capital outflows".
(https://www.bloomberg.com/news/2013-12-27/baht-falls-a-second-week-on-concern-protests-to-spur-outflows.html )
a. Why do you think that there is going to be capital outflow?
b. If indeed there is going to be huge capital flight, what should be the policy taken up by Bank of Thailand to avoid a free fall of their exchange rate and how they can achieve it (explain at least one instrument)?
|
What is stored in mylist after the following c++ code
: Set the value of the twelfth component of beta to four times the value of the eighth component of beta minus 15.
|
|
Write c program to find the number of occurrences of a word
: Write C program to find the number of occurrences of a word from a file given in a specified path. For this you need to give your text file path with some text, and specify the word for which you need to find the frequency.
|
|
Replaced to get the current ratio to the target level
: Muscarella Inc. has the following balance sheet and income statement data: Cash $ 14,000 Accounts payable $ 42,000 Receivables 70,000 Other current liabilities 28,000 Inventories 210,000 Total CL $ 70,000 Total CA $294,000 Long-term debt 70,000. Assu..
|
|
Calculate the return on equity for mm
: Mighty Motors has no preferred stock. Calculate the return on equity (ROE) for MM for 2008. Make sure you use average shareholders' eq uity in your calculation.
|
|
Find the size of the multiplier in this economy
: Explain why a group of economist thinks that a common currency like Euro for the region is not a good idea. Restrict your answer to the concepts discussed in the class and the case study. Page limit is one page.
|
|
Narrative approach-strategy practitioners
: "The narrative approach emphasizes the way in which 'strategy practitioners' both subjectively construct and are constructed by stories.
|
|
Estimates for new gear assembly project
: Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1382 per unit; variable costs = $263 per unit; fixed costs = $3925292; quantity = 70721 units. Suppose the company believes all of its estimates are acc..
|
|
What is the discount being offered
: You place an order for 540 units of inventory at a unit price of $170. The supplier offers terms of 2/15, net 60. How long do you have to pay before the account is overdue? If you take the full period, how much should you remit? How quickly must you ..
|
|
Annotated bibliography of drake
: Provide an annotated bibliography of Drake, D., Sutterfield, J.S. and Ngassam, C. (2008). The Revolution of Six-Sigma:
|