ECO365H5 Study Guide - Midterm Guide: Money Supply, Spot Contract, Interest Rate Parity
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Instructions: this is a closed-book exam and the use of calculators is not permitted. Make all the extra assumptions you consider necessary, but make sure to state them clearly. Good luck: (30 points) during 2008, the value of expenditures by households of a ctitious economy on nal goods and services was 100. The government spent 50 on nal goods and services. Consumers invested 50 in the domestic stock market. Domestic rms exported ( nal and intermediate) goods and services in the amount of 20 (15 in nal goods and services and 5 in intermediate goods and services). Imports totalled 25: (10 points) gross national product is a measure of a country"s overall economic output. Gnp accounts avoid double counting by including only the value of nal goods and services sold in the market. 1: (35 points) consider a canadian investor with 1000 dollars to place in a bank deposit in either canada or germany.
