Econ 4520: First Midterm
Answer all the questions below. You have an hour for a total of 80 points.
Answer the following multiple choice questions. Each of them is worth 2 points.
M1) A country's gros
Econ4520: homework 04 solution
Question 1. Basics of DD-AA
1. What equations were used to build the DD curve?
Solution. Y = AD = C(Y T ) + I + G + CA(EP /P, Y T ). These
equations imply a positive rel
Question 16
A) Explain the effect of an increase in the money supply growth on r,P,E. How can your
answer be reconciled with the UIP?
An increase in money supply growth by increases expected inflation
Question 1
1) Report the regression coefficients and the coefficient of determination R2:
for the regression: xri=0+1(rdpna/pop)i+error
0= 962.8434 1=-0.02578 R square= 0.034243
Plot the data and the
International Monetary Theory
and Policy
Viktor Tsyrennikov
Uris Hall, room 452
Oce hours: TTh 1:30-2:30PM
Lecture 12: Internal vs External Balance
Internal Balance
Internal Balance
External Balance
E
Econ 3620. International Monetary Policy and Theory
Important topics
When preparing for the final exam make sure that you understand the following concepts.
These are the most important topics that we
International Monetary Theory and Policy
Final Exam
December 9th, 2011
Read questions carefully before answering. There are 10 shortanswer questions and two extended-answer questions. The first
10 que
Econ 4520:
International Monetary Theory and Policy
Lectures: TR 2:55-4:10, room RCK 115
Oce hours: TBA, room UH 452
Teaching assistant: Tianli Zhao
This class focuses on such international economics
International Monetary Theory and Policy
Exam 2. Solution
1. Write down the Fisher equation.
Solution. R-e=R*-*e.
2. Assume that the central bank increased money supply growth. How is the nominal
exch
International Monetary Theory and Policy
Exam 2. Solution
1. Write down all the equations behind the DD line and explain its slope.
Y=AD=C(Y-T)+G+I+CA(EP*/P,Y-T)
When E increases (depreciation) then C
Econ4520: homework 05 solution
Crisis management
Consider a world that consists of two equal-size economies. Both economies
are currently in the full-employment level of output.
A. Suppose that a cris
Chapter 13: Fixed versus Floating Exchange Rates
Key Terms
Exchange rate risk
o Occurs when the profit in trade or the rate of return on an international
investment can fall quickly because of a chan
Chapter 12: Policy Effects with Fixed Exchange Rates
Key Terms
Devaluation
o When the government lowers the value of its currency with respect to the
reserve currency or to gold in a fixed exchange r
Chapter 11: Fixed Exchange Rates
Key Terms
Dollarization
o Currency fixing by adopting the U.S. dollar as ones currency.
Reserve currency standard
o A currency standard in which all countries fix to
International Monetary Theory and Policy
Exam 2
1. Write down the Fisher equation.
2. Assume that the central bank increased money supply growth. How is the nominal
exchange rate affected at the time
Econ4520: homework 03 solution
Question 1. Data
The Penn World Table (PWT) that can be found at http:/www.rug.nl/
research/ggdc/data/penn-world-table is a known source of data used for
international c
Francesco Bianchi
Assistant Professor
464 Uris Hall
Ithaca, New York 14853
Econ 4520: Problem set 3
Due on Tuesday, March 8th in class or in Francescos mailbox by 10:00 AM (Uris
Hall, 4th floor).
Solv
Econ 4520 International Monetary Theory and Policy
Problem Set 3 Solution
Problem 1 (KOM Chp. 15)
A reduction in the home money demand causes interest rates in the home country to fall from
Rh,1 to Rh
Chapter 16
Price Levels
and the Exchange Rate in the Long Run
Preview
Law of one price
Purchasing power parity
Long-run model of exchange rates: monetary approach
Relationship between interest rat
Francesco Bianchi
Assistant Professor
464 Uris Hall
Ithaca, New York 14853
Econ 4520: Problem set 1
Due on Thursday, February 11th. You can leave your problem set in Francescos
mailbox before class (U
Chapter 15
Money, Interest Rates, and
Exchange Rates
Preview
What is money?
Control of the supply of money
The willingness to hold monetary assets
A model of real monetary assets and
interest rate
Econ 434
Professor Ickes Fall 2002
Midterm Exam II
Answer Sheet 1. (25%) Use the asset approach to exchange rate determination to explain what happens to the exchange rate, both at impact and in the l
Model AA-DD
abreviated
Based on Krugman & Obstfeld
Chapter Organization
Determinants of Aggregate Demand in an
Open Economy
The Equation of Aggregate Demand
How Output Is Determined in the Short Run
O