Using the macroeconomic model studied, analyze the impact of the
following events on Canadian savings, investment, exchange rate and
trade balance in the Canadian economy:
a: voluntary export restraint (VER) by Japanese car producers.
Explain with words + graph(s).
Using the macroeconomic model studied, analyze the impact of the following events on Canadian savings, investment,...
Using the macroeconomic model studied, analyze the impact of the following events on Canadian savings, investment, exchange rate and trade balance in the Canadian economy: a: voluntary export restraint (VER) by Japanese car producers. Explain with words + graph(s).
Use the model of the small open economy (Apply the small open economy model of real exchange rate determination ) to predict what would happen to the trade balance, the real exchange rate, and the nominal exchange rate in response to each of the following events. draw a graph (be sure to label all points, shifts and curves) and provide a short verbal analysis of the impact on the trade balance, the real exchange rate and the nominal exchange rate)....
Use the model of the small open economy (Apply the small open economy model of real exchange rate determination ) to predict what would happen to the trade balance, the real exchange rate, and the nominal exchange rate in response to each of the following events. draw a graph (be sure to label all points, shifts and curves) and provide a short verbal analysis of the impact on the trade balance, the real exchange rate and the nominal exchange rate)....
1. A. Suppose in an economy, there is an exogenous fall in investment spending due to the burst of a housing bubble. Answer the following questions using the IS-LM-FX model. Which schedule shifts in the IS-LM model on impact? ii. i. What happens to the equilibrium output, interest rate, and exchange rate after this change? B. Suppose that following the decline in investment spending, the central bank decides to pursue an output stabilization policy. Answer the following questions comparing the...
1: what would happen to national saving, investment, trade balance interest rate, and real exchange rate in responding to an increase in tariff on imported cars by the domestic government? graphically explain with the help of large open economy 2: what do you mean by trade policies? it's argued that protectionist trade policy benefits only local producers whereas society on the average suffers from it, do you agree with the statement? graphically explain considering a model of small open economy?
6 24 2 8. Then use the following information to show the impact of a change in exchange rate on the trade balance Suppose that there are two goods sold in China and in the U.S When the exchange rate is 1USD = 6 yuan a car cost $50,000 in US and 0,000 yuan in China and the price of a shirt is $20 in U.S and 120 yuan in China. US imports the shirt and exports the cars 30...
Question 22 What has helped the UAE to attract foreign capital investment in to the country? a) Investment opportunities in the country b) The expansion of Free Trade Zones in UAE c) Developed infrastructure and legal procedures that makes doing business easy d) All of the above are good reasons Question 23 The GCC (Gulf Cooperation Council) to which the UAE is a member is an example of: a) an Economic and Monetary Union b) a Common Market c) a...
Use the following macroeconomic model to answer questions from Q1 through Q11: C 115 + 0.75Yd, where C = Consumption function; Yd (Y-T-Disposable income I 150; Investment G-200; G Government expenditure T-100; T = Tax revenue 40; X = Export M = 30; M-Import Also assume that Yf Full employment GDP (potential GDP) 2,000 a1. Estimate the equilibrium GDP level (income, Ye). Q2. Estimate the level of aggregate consumption (C) Q3. Estimate the level of aggregate saving (S) Q4. The...
Using Grossman’s pure investment model of the demand for health, consider the impact of the following on the marginal efficiency of investment (MEI) and related optimal health stock (include a graph in your explanation): Rather than having stopped school with a high school diploma, by age 22 Poppy obtained an undergraduate degree in public health. How would this education decision impact her optimal level of health? Suppose that after age 22 her wage rate stayed the same, what happens to...
Intermediate Macro Question Consider a small open economy in the classical model, assume the production function is y=1000(square root KL) K=20 L=5 Government spending is 1000 and taxes are 1000. the consumption function is c=1500+0.5(Y-T) investment equation is 1000-50r=I net export function is 5000-5000e world interest rate is r=r*=10 Solve 1 income 2 consumption 3 National Savings 4. Investments 5. Trade balance 6 Real exchange rate 7. The real world interest rate rises to 20 solve for the new values...