techteach

Consider two economies, Home and Foreign.  The DC/FC exchange is determined by the asset approach to the exchange rate.

Both countries are identical in the following ways:

• Production function is given a typical Cobb-Douglas function: Y = AKαL(1-α).
• The (real) money demand is given by hY – kR,

where     h = fraction of income held in the form of money, 1> h > 0

k = sensitivity of money demand (MD) to a change in (nominal) interest rate. 

Home and Foreign differ in the following ways:

Home

Foreign

Level of total factor productivity

4

1

Supply of capital

50625

40000

Supply of labour

10000

62500

Capital’s share of income

0.25

0.5

Nominal money supply

67200

28080

Fraction of income held in the form of money

20%

30%

Sensitivity of MD to a change in (nominal) interest rate

8000

8000

Long-run nominal interest rate

10%

12%

Note: 

• Quote the exchange rate as EDC/FC.
• Interest rates are expressed in decimal points (i.e., if R = 0.1, then it is interpreted as 10%).
• Keep your answer to at least 4 decimal points.

1. Initially, both countries are in their respective long-run equilibrium.  Find the long-run levels of prices in both countries and the DC/FC exchange rate if the (initial) expected DC/FC exchange rate is given by the ratio of domestic price level to foreign price level.  (6 points)

Suppose there are permanent changes in the domestic money market such that the central bank of Home shrinks its balance sheet.  As such, the level of money supply changes by 10%.  At the same time, the sensitivity of (domestic) money demand (MD) to a change in (nominal) interest rate changes to 6000.  In addition, any permanent change will cause the market the to revise their expected exchange rate by 0.3474 DC per FC. 

1. Find the short-run equilibrium DC/FC exchange rate. (5 points)
2. Find the new long-run equilibrium levels of prices in both countries and the DC/FC exchange rate. (4 points).
3. Now, suppose the central bank of Foreign finds the change in the short-run exchange rate in part (b) undesirable and wants to keep it EDC/FC at 1.75 via a temporary change in monetary policy. Is it possible for the foreign central bank to achieve this goal?  Yes/No, explain.  (5 points)

What will phone in the future be used for , look like and feel like?

Describe what the cell phone is ,it’s origin, and its purpose?

Subject-Art

Suppose that after you study some of the great artists of modern times such as Henri Matisse, Wassily Kandinsky, and Pablo Picasso, you take your friends to the art museum to expose them to what you've learned. You walk through the Renaissance, Baroque, Neoclassic, Romantic, and Realist exhibition rooms first. Then you head to the Fauve, Expressionist, and Cubist rooms. Your friends are shocked. One friend sees a Matisse and responds, "That's not good art!" Another claims, "My little brother could do better than that," when viewing a Kandinsky. And another says about a Picasso Analytical Cubism piece, "That's just ugly." Choose one of your friends' responses to modern art and write your response to it. Try to broaden your friend's appreciation of art that is highly abstract. As you answer, add both general aesthetic points and more specific points about the artist and his or her work.

What are the 'areas of jurisdiction' in the brain called?

C. fissures

B. lobes

A. cortex

Declaration of Independence, 1776, Part A

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.--That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, --That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government

Declaration of Independence, 1776, Part B The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid world.

He has refused his Assent to Laws, the most wholesome and necessary for the public good.

1. How are the principles of classical liberalism (individual rights) present in

this text?

2. How are the principles of classical republicanism (common good) present in this text?

3. How are the principles of classical liberalism (individual rights) present in this text?

4. How are the principles of classical republicanism (common good) present in this text?

A scientist discovers a fossil of an animal, and place is it in the fossil record. The organisms bones are similar to the bones of animal tea, which appears earlier in the fossil record, which conclusion is most reasonable.

A. the fossils are from a descendent animal of T,

B. The fossils came from the same organism.

C. The fossils are from animals that lived at the same time.

D. The fossils are from an ancestor of animal T.

What are the elements that tend to insulate management somewhat from the financial results of poor financial planning?