Professor Christiano
362, Winter 2002
Suggested Answers to Midterm
1. (a) the UIP can be derived under the assumption that portfolio managers only compare dierent assets in terms of their expected rate of
return and international nancial markets are very
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Professor Christiano
362, Winter 2003
Midterm
IMPORTANT: read the following notes
You may not use calculators, notes, books, or aids of any kind.
Please feel free to ask the proctor questions if the wording of a question
is unclear.
A total of 100 poin
Professor Christiano
362, Winter 2002
Midterm
IMPORTANT: read the following notes
You may not use calculators, notes, books, or aids of any kind.
Please feel free to ask the proctor questions if the wording of a question
is unclear.
A total of 70 point
Professor Christiano
362, Winter 2003
Final Exam Suggested answers
1. Following are several scenarios. Explain what underlying shocks could
be driving them.
(a) The exchange starts to appreciate, output is increasing and the
current account is increasing.
Professor Christiano
362, Winter 2003
Final Exam
IMPORTANT: read the following notes
You may not use calculators, notes, or aids of any kind.
Note the points each question is worth and plan your time accordingly.
The total number of points possible is 100
Professor Christiano
362, Winter 2002
Final Exam
IMPORTANT: read the following notes
You may not use calculators, notes, or aids of any kind.
Note the points each question is worth and plan your time accordingly.
The total number of points possible is 1