Final03 - Economics 102 Professor McClelland FINAL EXAM...

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December 18, 2003 Professor McClelland Economics 102 FINAL EXAM PLEASE NOTE : The exam has 4 parts. Each of the 4 parts is of equal value. Total time: 2 hours. Answer the last part (Part D) on the sheet provided. For each of the other 3 parts (A through C), PLEASE USE A SEPARATE EXAM BOOK FOR EACH PART ; i.e., submit a total of 3 exam books. On the outside of each book please put (a) your name, (b) your TA’s name, and (c) the question (A,B, or C) being answered. PART A (30 minutes) The falling dollar ... is just what the doctor ordered for a weak American economy. ...The main problem is that what is good for American manufacturers is bad for European manufacturers. ... Ideally, Europe should be cutting interest rates to support demand at home. (1) In the two country (Britain and America) two currency (pounds and dollars) example we used to investigate how foreign exchange markets work, explain why the demand for pounds by Americans planning to travel to Britain slopes downward to the right.
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