Pls do not handwrite the answer, this is for easy reading
Question 4
a)Country Alpha has a fixed exchange rate system and free capital mobility. Due to an economic recession and a trade deficit, it is pursuing an expansionary fiscal policy to improve the country’s balance of payments. Illustrate and discuss if this expansionary fiscal policy is effective to achieve the country’s economic growth and balance of payments.
b)Country Sigma is an open economy with a flexible exchange rate and it pursues a contractionary monetary policy which will lead to lower rental income and price level. Explain how this is possible.
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Pls do not handwrite the answer, this is for easy reading Question 4 a)Country Alpha has...
Pls do not handwrite the answer, this is for easy reading Question 3 Is the Singapore dollar strong, by policy choice by the Monetary Authority of Singapore (MAS) and/or by its overall performance in the economy and surpluses in its balance of payments? Discuss and explain the effects as favourable or unfavourable, including any mitigating policies as well for Singapore to remain competitive overall.
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? Only with increasing output Only with increasing the current account balance No, not with either goal Yes, with both goals In the short run, if taxes rise, output will_and the exchange rate will increase; appreciate increase; depreciate decrease; appreciate decrease; depreciate With a fixed...
Pls do not handwrite the answer, this is for easy reading Question 1:- c) Develop arguments about how the MAS (Monetary Authority of Singapore) could manage the conflict in its dual roles of regulating the financial market as well as promoting Singapore as an international financial centre. Give relevant cases to support your saying. refer to this link http://www.mas.gov.sg/News-and-Publications/Speeches-and-Monetary-Policy-Statements/Speeches/2018/MAS-Annual-Report-201718.aspx
Pls do not handwrite the answer for easy reading question: The basis period for a year of assessment is always based on the calendar. Explain whether you agree or disagree with the statement.
Problem 3 (4 points) a) Assume that a country is characterised by a small capital mobility and a flexible exchange rate. The government has increased fiscal transfers. Show the new short run equilibrium, referring to the Mundell-Fleming model. What will happen with exchange rate? Answer using appropriate graphs. (1,5p) b) Assume now that the country has "big but not perfect" capital mobility. Repeat a (start from equilibrium). Under which case -"a" or "b" will fiscal policy be more expansionary? Why?...
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? Only with increasing output Only with increasing the current account balance No, not with either goal Yes, with both goals
19 20 QUESTION 19 A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? O Only with increasing output O Only with increasing the current account balance O No, not with either goal Yes, with both goals QUESTION 20 and output will In the short run, if the central bank decreases the money supply,...
1. Given the information in Table 1, in a two country and two-product Ricardian model, which of the following statements is (are) true? Table 1 Unit Labour Requirements T-shirt Brandy 4 hours 12 hours 6 hours 12 hours United States France A) The pretrade price ratio in France is 1 brandy - 2 T-shirts. B) The US pretrade price ratio is 1 brandy - 4 T-shirts. C) The US pretrade price ratio is 1 T-shirt = 1/3 brandy. D) The...
5. If data indicate the economy is in recession and members of Congress are working to pass legislation to encourage economic growth, which of the following has almost certainly occurred? a. Realization of results b. Recognition of change in the economy c. Implementation of policy d. Analysis of policy's effectiveness 6. Which of the following is a significant decline in general economic activity over an extended period that includes declining real income and rising unemployment? a. A business cycle b....
Question 4 Assume that after years of economic recovery, the US economy has reached its natural rate of output. Explain with a diagram how a continuous rise in oil prices affects the price and output levels of the US. Based on your answer in (a), what kind of fiscal policy can be implemented to restore the output level back to its natural rate? Illustrate your answer with a diagram. What will happen to the price and output levels? How does...