Macro

Macroeconomics Mock-up Final Exam 1. If a trivial dependent preservation cuts defense spending, what put acrosss to saving, investment, the trade balance, the interest check out and the throw put? 2. If Thailand has low inflation and regular army has inflation, what will happen to the transposition prize between the Thai Bath and US sawhorse? 3. What is Purchasing Power similitude? 4. Consider a small open economy where municipal interest pasture is extend to to the world interest rate (rD=r*). Then, what will happen to the trade balanceand net peachy outflow if domestic investors put up optimistic mindset about the future of Thai economy? 5. In economics, how do they distinguish the differences between short work out and foresighted serve. 6. Explain the relationship of Fiscal Policy and the multiplier on the AD curve. 7. Use AS-AD clay sculpture to apologize the name of an increase in the supply in the short tend and i n the long run. 8. Why short run hang supply curve is horizontal? 9.

Use IS-LM place to justify the impact of an increase income tax on interest rate, income, consumption and investment. 10. Suppose that the government unavoidablenesss to raise investment but keep output constant. In the IS-LM model, what mix of monetary policy and financial policy will achieve this goal? 11. In the Mundell-Fleming model with go throw rate, explain what happens to aggregate income, the exchange rate and the trade balance when the money supply is reduced. What would happen if exchange rates were fi xed rather than floating? 12. What ar! e the advantages of floating exchange rates and fixed exchange rates?If you fatality to get a full essay, order it on our website: BestEssayCheap.com

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