STUDY QUESTIONS #1
EXCHANGE RATE BASICS
1. How do you read E$/ ? How would you interpret an increase in this exchange rate? a
decrease? What is the reciprocal of this exchange rate?
2. Assume that transactions costs in the yuan/dollar market decl
Study questions #4
EXCHANGE RATE PASS-THROUGH QUESTIONS
1. As we move further up a linear demand curve, the elasticity of demand increases (in absolute
value terms). Explain.
2. Empirical evidence indicates that exchange rate pass-through is freq
STUDY QUESTIONS #2
QUESTIONS ON MONETARY APPROACH (EXCHANGE RATES IN THE LR)
1. Define each term in the equation of exchange and explain how this equation can be converted
into a supply and demand framework to analyze the money market. Interpret
ECONOMICS 122: INTERNATIONAL FINANCE
INSTRUCTOR: EDWARD MCDEVITT
UCLA, SUMMER 2014
Lecture Days and Times: MW 1-3:05 p.m.
Classroom: Dodd 121
Office: Bunche Hall 2255
Office Hours: Tu 10:00-10:50 am, Wed 3:10-4:10 p.m.
I also hold additional office hours
Study Questions #3
QUESTIONS ON THE CONSTRUCTION OF THE IS-LM-FX MODEL
1. What does our short-run model assume about price levels and what are the implications of this
2. What is meant by AE and what are its components? What factors impact eac