40 Second Midterm Review Sheet
The exam will be worth 25 points for 25% of your grade. The exam will be in two parts. The
first part will be short answer/identification questions. You will need to answer 10 of 12. This
will not be cumulative. It will only
This midterm is from several years ago, yours will look similar in terms of structure and content.
The exam is divided into two parts. The first part is worth 60 points, and it consists of 10 multiple
choice questions, worth 6 points each. Your answers to
International finance class notes
1. Many developing countries had their domestic macro equilibria disrupted by
sharp decreases in US interest rates in the early 1990s. Assuming that such
countries maintained fixed exchange rates at the onset of the inter
The macro economic policies of the ReaganVolcker period were similar to
those of the Kohl government of West Germany following the fall of the Berlin Wall,
namely an increase in government expenditures, a restrictive monetary policy, and
little increase i
1. Order Transmittal, Delivery Time, Delivery schedule, order quantities,
order processing, Additional Stock Acquisition.
Regular Stock Shipping- Order transmittal, Order Process, Order
Quantities, Delivery Schedule, Delivery Time.
International Finance Midterm
1. In the economic consequences of Mr. Churchill, John Maynard Keynes lambasted the
government for returning Britain to its prewar gold parity after WWI despite the much
higher inflation experienced by Britain than the United
The following questions are based on the newspaper article on building new highways around
Houston, TX. The article is at http:/www.nytimes.com/2009/03/23/us/23sprawl.html.
1. The primary effect of the highway is to allow better access to new housing deve
Source: National Resources Defense Council (NRDC)
Date: February 2013
Author: Nathaneal Greene
a. The policy is trying to address the externality
If there is different levels of inflation, but the same Real interest rate that demonstrates
that the nominal exchange rates can be different in separate countries while real interest
rates are the same thereby upholding UIPAssume a floating exchange rate
-Consider a small open economy that operates a fixed exchange rate under conditions of perfect
capital mobility. What tradeoffs does it face in choosing between soft and hard peg for currency?
a. Hard Peg UIP Con no control of monetary policy. Pro adds le