Foreign country engages in fiscal expansion

Assignment Help Macroeconomics
Reference no: EM132476271

In the open-economy, suppose the domestic economy has a fixed exchange rate and the foreign country engages in fiscal expansion.

  1. Use the IS-LM and interest-parity graphs to show the effects of foreign fiscal expansion on domestic output, interest rate and exchange rate. Assume that the change in i* is smaller than the change in i caused by the initial shift of domestic IS curve. Briefly explain the results
  2. How will the components of GDP (C, I, G, and NX) change and why?

Reference no: EM132476271

Questions Cloud

Describe the discounting operation tool : Briefly describe the Discounting Operation tool. Then, fully describe what constitutes an effective expansionary policy in the use of this tool
How does operator overloading affect ease of reading code : How does operator overloading affect ease of reading or writing code? Explain. The following is a grammar for arithmetic expressions. E stands for expression.
Is a factory owned by connect ltd : Is A factory owned by Connect Ltd and is being rented out to a manufacturer of computer accessories on a non-cancellable three-year lease?
What will happen if oil producers think that the price : Assume that the current equilibrium price for a barrel of oil is $23 and the interest rate is 6.90 percent. Round answers to the nearest whole number.
Foreign country engages in fiscal expansion : In the open-economy, suppose the domestic economy has a fixed exchange rate and the foreign country engages in fiscal expansion.
How microsoft took part in the transactions : How Microsoft took part in the transactions? Issued 5,000 shares of stock at $49 per share, less costs related to the issuance of the stock totaling $12,000.
Design a visual analytics workflow in knime to process : Design a visual analytics workflow in KNIME to process, analyse and visualise the data - Interesting findings achieved by apply the workflow on the data
Explain different learning paradigms and methods in ai : List and briefly explain different learning paradigms/ methods in AI. What is representation learning, and how does it relate to machine learning and deep.
Create journal entries to record issuance of the stock : Create the journal entries to record issuance of the stock options, termination of the stock options, exercise of the stock options, and charges

Reviews

Write a Review

Macroeconomics Questions & Answers

  What do we meanwhen we say that a firm is a perfect

What do we meanwhen we say that a firm is a perfect competitor in the productand labor markets? Does it have anything to do with many firmsproducing the same good with the same type of labor?

  Diagram showing the effect of a global recession

Suppose that the supply and demand for oil. Starting from a point where supply and demand are in equilibrium, describe with use of a diagram how a global recession is likely to affect equilibrium value and quantity of oil bought & sold.

  What can conclude about price elasticity of magic kingdom

What can one conclude about the price elasticity of the Magic Kingdom? Is it likely price elastic or price inelastic? Explain the rationale for your response.

  Opposite ends of a north-south shopping mall

Two hamburger restaurants are located at opposite ends of a north-south shopping mall. From end to end, the shopping mall is 1/2 mile in length. Restaurant North and restaurant South each sell hamburgers for $5.00.

  Write a paper on growth and development of financilal market

Write a paper about growth and development of financilal market (related to banks) of country India.

  Main effect of technology on political

What is the main effect of technology on the political or social life in your region?

  Impact of price ceiling on consumer surplus

Suppose a product sold in a competitive market is subject to a government price control. Suppose the regulated price is less than the free market equilibrium price.

  What explains the recent economic growth in your country

What is the most recent rate of growth of the country and how does it compare to the economic growth rate for the same year in the United States? What explains the recent economic growth, or lack of growth in your country?

  Draw a decision tree in the excel worksheet named model

Draw a decision tree in the Excel Worksheet named "Model" using the 4 health states as determined in the Eur Heart Journal trial (4). Calculate the drug costs for each health state for each arm - use the "Costs" worksheet (4)

  What specific indices mean in relationship to overal article

1.A minimum of three general economic principles related to the recent article not older than six months. 2.Identification of five macroeconomic indices 3.Explanation of the indices e.g., GDP, CPI, and other economic calculations

  Discussion about increasing the federal minimum wage

In recent months, there has been lots of discussion about increasing the federal minimum wage?

  Labour force participation rate and unemployment rate

The BLS estimates that in 2002, the number of working-age adults was 211.9 million, labour force was 141.8 million, and the total number of employed was 135.1 million.  Calculate the following:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd