What is the role of the exchange rate in the transmission of the
funds rate to aggregate demand in the open economy model, and is
monetary policy or fiscal policy more effective in and open
economy?
Fully explain the effects of an increase in the expected future
exchange rate on the spot exchange rate under both fixed and
flexible exchange rate regimes (include the effects on the BOP, FX
market, and domestic and foreign returns).
The Traditional economic measure, Balance of Payment,
is responsible for its
effects on Exchange Rate, Gross Domestic Product, Unemployment and
Inflation. Discuss
how?
Type an essay about "Transmission lines theory", explain with
it; transmission lines effects and their causes, then state the
difference between the propagation of electromagnetic waves in such
structures and the propagation in an unbounded space, like free
space
Your essay should not exceed one page
Explain the potential ambiguity in the effect of exchange rate
changes on the balance of trade. How does the Marshall-Lerner
condition clarify the nature of this ambiguity? [ 25 marks]
Explain the potential ambiguity in the effect of exchange rate
changes on the balance of trade. How does the Marshall-Lerner
condition clarify the nature of this ambiguity?
[26 marks]