a. If the current exchange rate is $1 .63:£ 1, what is the expected future exchange rate in one year?
b. Suppose a change in expectations regarding future spot rate to decline to $1.52:£l. What
should happen to the US. interest rate?
5-If expected inﬂatio
Intermediate Macroeconomics (ECO 3311)
Problem Set 2
Dr. Xiaohan Ma
1) For the U.S. economy, which of the following represents the largest component of
C) government spending
E) none of the a
Quiz 8 Feb 16
Label each of the following statements true, false, or
a. The main determinants of investment are the level of
sales and the interest rate. True
b. The IS curve is downward sloping because goods
market equilibrium impli
Quiz 4 Feb 2
Calculate the total change in US GDP, and the change in C, I, G, and NX.
a. A family buys a house, using a real estate agent, for $150,000. The
agents fee on the transaction is 6% of the selling price. $9,000
b. You win $25,000 in
Quiz 1 Jan 24
Q1. What was the total output in US in 2015?
A. 17.4 trillion
B. 17.4 billion
C. 17.4 million
Q2. Which country had the highest living standard in 2015?
A. United Kingdom
Q3. If the country in Q2 had an outpu
Quiz 2 Jan 26
Q1. During a given year, a silver mining company pays its workers $200,000 to
mine 75 pounds of silver. The silver is then sold to a jewelry manufacturer for
$300,000. The jewelry manufacturer has some machines that it bought in t
Quiz 7 Feb 14
The Valentines price index is given by:
Q1. Suppose that economists use Valentines index to estimate the inflation in US: the
growth rate of CPI is 10% lower than the growth rate of the Valentines index. You also
know that the sam
Economics 433 1-001
Economics of Multinational Enterprises
Solution to Problem Set 4 Dr. Masha Rahnama
a. Goods: $400
Military equipment $200
b. Services: $100 (tourism)
c. good $0
d. services $10 (interest)
Quiz 3 Jan 31
Q1. If nominal GDP rises from $100 trillion to $110 trillion, while the GDP
deflator rises from 2.0 to 2.3, the percentage change in real GDP is
approximately equal to _-5%_.
Q2. Suppose a country uses the United States' system of
Quiz 6 Feb 9
1. Suppose a persons yearly income is $60,000. Also suppose that this persons
money demand function is given by
Md = $Y (0.35-i)
a. What is this persons demand for money when the interest rate is 5%? 10%?
b. Suppose that the intere
Quiz 5 Feb 7
Suppose the economy is characterized by the following equations:
C = 160 + 0.6YD
I = 150, G = 150, T = 100
a. What is the propensity to consume? What is the multiplier?
b. Calculate the equilibrium GDP.
c. Calculate the level of c
Eco-outlet Multinational Enterprises
t. Ruimla is calculating It: helm of payments for the year. As ueual. its data are perfectly
mutate. All of the transaction for the year are listed below (in RurS millions). l-tll
Economics of Multimth Enuptises
I. Item. isdtedollu- value ofin 1988.0xennccotéingtopwchuingpowupuity
mums-1061102 or ems=$0.5612
insigniftant and hen