ECMC61_Assignment_2_%28Summer_2010%29

ECMC61_Assignment_2_%28Summer_2010%29 - ECMC61 LEC 01 and...

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ECMC61 – LEC 01 and LEC 02 International Economic: Finance Assignment 2 Due: On or Before Tuesday, July 27, 2010, 10:30am , MW376 (Note: Assignment submitted after Tuesday, July 27, 10:30am WILL NOT BE accepted under ANY circumstance.) Instructions: You can submit individual or group assignment. If you submit group assignment, there should be no more than FIVE students in your group and you just have to submit ONE copy. A title page MUST be attached with your assignment; it MUST include your name(s), student number(s), and your lecture section(s). Staple your assignment (Paper clip is not accepted). A PENALTY OF 10% OF THE TOTAL MARKS WILL BE IMPOSED IF YOU DO NOT HAVE A TITLE PAGE AND/OR STAPLE YOUR ASSIGNEMNT. No late assignment will be accepted under any circumstance. Label your graph; otherwise, marks will be subtracted. Do not write E/q/E e increases/decreases in your answer, you have to answer whether the currency appreciates/depreciates. POINTS WILL BE SUBTRACTED IF YOU DO NOT FOLLOW THIS INSTRUCTION . No credit will be given if you do not show your work. Your answer should be structured in a way such that those know little about economics will have no difficulty understanding your argument/answer. Clearly label the factor(s)/variable(s) that causing the DD and AA curves to shift in your diagram. Total marks: 100 points. Question 1 (15 points) The economy in question has a flexible exchange rate and its level of output is currently above its full-employment level.
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ECMC61_Assignment_2_%28Summer_2010%29 - ECMC61 LEC 01 and...

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