F07ex3464_intertemporal

F07ex3464_intertemporal - You are not allowed to consult...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
You are not allowed to consult any notes or books. You have to write your answers in the blue book that the persons proctoring the exam give you. Your answers should reflect only your knowledge. Attempting to consult with others or to look at someone else’s work constitutes academic misconduct. Please return this page with your blue book. Name:. .......................................................... Section (number or time): . ........................ Econ 464 M. Muniagurria Fall 2007 Exam 3 (80 pts) (I) Intertemporal Trade Consider the model of intertemporal trade developed in class. Assume there are two countries (call them “Now” and “Then”) with nice PPF frontiers between present and future consumption good (corn) . “Now” has a comparative advantage in the production of time 0 corn and “Then” has a comparative advantage in the production of time 1 corn. If a country borrows at time 0 from the other it will do so by issuing an IOU in exchange for the corn. If instead a
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/23/2011 for the course ECON 301 taught by Professor S.chiu during the Spring '11 term at HKU.

Page1 / 2

F07ex3464_intertemporal - You are not allowed to consult...

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