mid_rev_161

mid_rev_161 - Economics 161 Matthias Doepke Monetary Theory...

Info iconThis preview shows pages 1–2. 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
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Economics 161 Matthias Doepke Monetary Theory Winter 2007 Midterm Review Questions Definitions Question 1: Define the following. 1. The velocity of money. 2. Phillips curve. 3. Currency board. 4. The real interest rate. 5. Real government debt. Short Questions Question 2: Explain the concept of purchasing power parity (PPP). State an equation that summarizes PPP using the nominal exchange rate e , the home price level P , and the foreign price level P ? . Question 3: You are the advisor to the central bank governor of a small Central Asian repub- lic. The governor confides that he has no control over the central government, and that the government is running a persistent primary deficit of 2 percent of GDP. Currently, government debt is still close to zero. The governor wants to minimize inflation in the long run. What is your advice? Question 4: Discuss the likelihood of a speculative attack on a currency under a fixed ex- change rate regime, a floating exchange rate regime, and a currency board.change rate regime, a floating exchange rate regime, and a currency board....
View Full Document

This note was uploaded on 05/26/2009 for the course ECON 161 taught by Professor Cai during the Winter '04 term at UCLA.

Page1 / 3

mid_rev_161 - Economics 161 Matthias Doepke Monetary Theory...

This preview shows document pages 1 - 2. Sign up to view the full document.

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