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Unformatted text preview: / ECON 313 International Economics Midterm #3 November 23,2009 Name: ~.-, ID Number:- - - - - - - You are permitted to only have a writing utensil, a non-programmable calculator, and a straight-edge with you during the exam. Answer all questions fully. Show your work for credit. Be sure to label all curves and points on graphs. I f you feel a graph is appropriate for a question, include one with your answer, even if not explicitly asked for. Be sure to fully discuss your answers. Good Luck!! .~ . 1. (20 Points) Suppose it is widely expected that the u.S. economy will grow faster than the " Japanese economy, have lower interest rates, more rapid inflation, and have a greater growth in money supply. What do these expectations suggest will happen to the value of the dollar? (Please reference the various approaches to exchange rate determination in your answer) 1. c;.(lo~ ~",,~\"QSR_ \\.~?,'~~ ' R \ ) N ~ ~ \-t:- ~ [email protected],C\Po..t<=s 7 ..... ~ovJ~ ~N\~~"'>\_ ~.c. ~ S,-,o\t\~ ~ ~ ~ ~ 9~~c.\c..tc-sS,-,o\t\~ ~ ~ ~ ~ 9~~c....
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This note was uploaded on 04/07/2011 for the course ECON 303 taught by Professor Staff during the Fall '08 term at Sonoma.
- Fall '08
- International Economics