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Q. Assume an economy is in a liquidity trap.
A. Write an equation expressing interest rate parity under a fixed exchange rate regime.
Answer: Liquidity trap entail R = 0. R = 0 = R* + (Ee - E)/E.
B. Assume Ee is fixed. Suppose that the central bank raises the domestic money supply so as to depreciate the currency temporarily (that is, to raise E currently but return the rate to Ee later). Show that E cannot be raised.
Answer: Ever since R = 0 the equation in part A the interest parity condition implies E = Ee / (1- R*) as Ee and R* are fixed E can't change.
Explain the formula of the Stefan law. STEFAN'S LAW: P = σ AT 4 Here: P = Power radiated into W (J/s) σ = Stefan's Constant 5.67 x 10 -8 W m -2 K -4 A = Su
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Does upthrust change in different liquids (examples please)
Poisson spot (S.D. Poisson) Originally Poisson predicted the existence of such spot, and utilized the prediction to revel how the wave theory of light have to be in error to g
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AC Input Resistance in Common Base Configuration Ratio of change in emitter base voltage (?V EB ) to the resulting change in emitter current (?I E ) is called in
prove - w2=w0+2alpha(thita-thita0)
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