Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Assignment
a. Write down the equation for Absolute Purchasing Power Parity
b. Consider the information given in the following Table, and fill in cells (i) - (ix).
c. Are the official exchange rates in India undervalued or overvalued?
d. Evaluate if real exchange rate has appreciated or depreciated in 2012 and 2015, estimate the rate of such appreciation or depreciation, and indicate them in cells (x)-(xiii).
e. What are the nominal exchange rates that would maintain Absolute PPP. Indicate them in cells (xiv) - (xvi).
2010
2012
2015
Country
India
USA
Nominal Ex Rate
i $/Rs.
46 Rs/$
ii $/Rs.
53 Rs/$
iii $/Rs.
64 Rs/$
Price Index - Local Currency
4600
100
5474
105
6762
108
Real Exchange Rate
IvUS Goods/Indian Good
v.Indian Goods/US Good
viUS Goods/Indian Good
viiIndian Goods/US Good
viiiUS Goods/Indian Good
ixIndian Goods/US Good
Rate of App/Dep of Real Ex Rate
x
Xi
xii
xiii
Nominal Exchange Rate as per PPP
xiv
Xv
xvi
f. What is the equation for Relative PPP?
g. What are Indian and US inflation rates in 2012 and 2015 relative to 2010?
h. Evaluate if the Relative PPP is held in 2012 and 2015 between India and the USA.
Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment
In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?
Describe the present economic crisis situation in Europe. Why has it been so difficult for the Europeans to find a solution to this problem? Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..
Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.
Question based on Derive and compare demand curve, Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?
Problem based on Utility Function - Problem, Answer and explain the following using a diagram which is completely labeled.
Question based on Laffer Curve : Tax Rate and Tax Revenue, Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?
Problem - Income Elasticity of Demand, Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5
Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."
Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.
How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.
Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd