finalf04 - Pierre-Olivier Gourinchas Econ182 Department of...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Pierre-Olivier Gourinchas Econ182 Department of Economics International Monetary Economics UC Berkeley Fall 2004 Final examination Instructions : This is a 3 hour exam with 5 questions worth a total of 180 points (approximately 1 point per minute), as indicated at the start of each question. In order to get full credit, you must give a clear, concise, and correct answer, including all necessary explanations. Calculators, books and notes are not permitted. Use this exam copy for question 1. Use bluebooks for questions 2-5 Please dont forget to write your name on each copy of your exam. Good luck! Last Name: First Name: International Monetary Economics, econ182 Fall 2004. Page:2 WRITE YOUR ANSWERS TO QUESTION 1 ON PAGES 2-5. 1. [30 points, 5 each] Choose six out of the eight following True, False, Uncertain ques- tions . Explain brie f y your answers, and cite the relevant theories, when applicable. (a) A current account de F cit requires a depreciation of the domestic currency in order to stimulate exports and limit imports. (b) Countries with high domestic in f ation rates over long periods of time experience a high rate of depreciation of their nominal exchange rate relative to the currency of countries with lower in f ation rates. International Monetary Economics, econ182 Fall 2004. Page:3 (c) An increase in domestic nominal interest rates is always associated with a nominal appreciation of the domestic currency. (d) If the price of oil were to temporary fall to $15 a barrel, we should expect the U.S. and other oil dependent countries to run a smaller current account de f cit. International Monetary Economics, econ182 Fall 2004. Page:4 (e) According to the World Bank, GDP per capita in 2002 was close to $1,000 in China and $36,000 in the U.S. [This is a fact; do not discuss]. This implies that the typical U.S. person$36,000 in the U....
View Full Document

Page1 / 7

finalf04 - Pierre-Olivier Gourinchas Econ182 Department of...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online