Review_Questions_Chapters_15__16.docx

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Department
Economics
Course
ECO365H1
Professor
Iris Wu
Semester
Summer

Description
ECMC61International Economics FinanceReview QuestionsChapters 1516Chapter 15Money Interest Rates and Exchange RatesQuestion 1 Problems 4Question 2 Problems 10Question 3 Compare to a temporary increase in real money demand there will be a larger appreciation of domestic currency in the short run when the real money demand increases permanentlyTrueFalseUncertain explainQuestion 4Consider two open economies Argentina and BrazilThe exchange rate between the Argentine Peso Peso and the Brazilian Real Real is given by the asset approach to the exchange rateThe level of money supply and the real money demand for both countries areArgentinaMS21250LR Y075Y5000R AAAAAABrazilMS16300LR Y05Y5000R BBBBBBNoteR
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