Tutorial 11_2009 - ECON1002 Introductory Macroeconomics, S2...

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ECON1002 Introductory Macroeconomics, S2 2009 Tutorial Tasks 1 R EADING G UIDE : BOF C HAPTER 16. Y OU SHOULD ALSO LOOK OVER YOUR LECTURES NOTES FOR W EEK 11. T HE FOLLOWING READING ( AVAILABLE THROUGH B LACKBOARD LEARNING R ESOURCES \R EADING L IST ) IS REQUIRED AS WELL . Gittins, R. (2009) "How the puny Pacific Peso became a pumped-up dollar" SMH, October 14th, 2009 K EY C ONCEPTS : N OMINAL AND R EAL E XCHANGE RATES , P URCHASING POWER PARITY , E QUILIBRIUM EXCHANGE RATES , THE R ELATIONSHIP BETWEEN M ONETARY POLICY AND E XCHANGE RATES . P ROBLEMS 1. How would each of the following be likely to affect the value of the dollar, all else being equal? Explain. a. Australian shares are perceived as having become much riskier financial investments. b. European computer firms switch from Australian-produced software to software produced in India, Israel and other nations. c. As East Asian economies recover, international financial investors become aware of many new, high-return investment opportunities in the region. d. The Australian government imposes a large tariff on imported automobiles. e. The Reserve bank reports that it is less concerned about inflation and more concerned about an impending recession in Australia. f.
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This note was uploaded on 04/14/2010 for the course ECON 1002 taught by Professor Markmelatos during the Three '10 term at University of Sydney.

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Tutorial 11_2009 - ECON1002 Introductory Macroeconomics, S2...

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