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What can you specifically conclude about relationship of Chinese purchases of financial and real assets abroad vs foreign purchases of Chinese financial assets?
A rise in the dollar price of yen necessarily means a fall in the yen price of dollars. Explain the purchasing-power-parity theory of exchange rates.
Suppose that a Swiss watchmaker imports watch components from Sweden and exports watches to the US. Speculate as to how each would hurt the Swiss watchmaker.
As it does so, what will happen to its official reserves of foreign currencies? Will they get larger or smaller?
What have been the major causes of the large U.S. trade deficits since 1999? What are the major benefits and costs associated with trade deficits?
Use a numerical example to explain why exchange-rate risk might make the French retailer hesitant. How might speculators absorb some of Super D'Hiver's risk?
Which product groups had the largest increases in exports? Which had the largest increases in imports?
What are the characteristics of a developing nation? List the two basic avenues of economic growth available to such a nation.
If both nations have a 3 percent increase in their real per capita outputs, by how much will the per capita output gap change?
How do you explain the fact that most international investment flows to the IACs (where capital is relatively abundant) rather than to the DVCs?
What were the trends in government-provided foreign aid versus private capital flows to the DVCs in the 1990s? Why do you think those trends occurred?
What types of products do the DVCs typically export? How do those exports relate to the law of comparative advantage?
Go to the Google search engine and search for Aid-Dependency Ratios World Bank. What continent dominates your list?
Plot the inflation rate of Canada, France, Germany, Italy, Japan, and the United Kingdom against the United States inflation rate.
What variables would you consider in developing such a model? See if your model matches the one developed by the Nobel laureate economist Gary Becker.
Controlled experiments in economics: On April 7, 2000. How would you devise a study to assess the impact of this change in the law?
What is the conditional expectation function or the population regression function? What is difference between the population and sample regression functions?
What level of excess reserves does the bank now have? Why does your answer differ (yes, it does!) from the answer to question 9?
Suppose a bank discovers that its reserves will temporarily fall slightly short of those legally required. What remedy is available to this bank?
Explain how the bank panics of 1930 to 1933 produced a decline in the nation's money supply. Which component has increased by the largest percentage?
Explain how these two demands can be combined graphically to determine total money demand. How is the equilibrium interest rate in the money market determined?
Assume that the following data characterize a hypothetical economy: money supply = $200 billion. What is the equilibrium interest rate? Explain.
What are the major strengths of monetary policy? Why is monetary policy easier to conduct than fiscal policy in a highly divided national political environment?
What change in the Federal funds rate would you recommend? How would your recommended change get accomplished?
Acording to the Taylor rule, in what direction and by how much should the Fed change the real Federal funds rate?