define the following:

9. Crawling pegs

10. Currency board

11. Speculative attack

12. Secular stagnation

Define each:

1. Quantitative easing

2. Forward guidance

3. Okun’s Law

4. NAIRU

1. Exchange rate crises

1. Explain how the central bank actually fixes the exchange rate.  What does this imply about the proximatecause of an exchange rate crisis with a fixed exchange rate? (2 pts)

2. Why do exchange rates crises tend to be more costly in emerging markets (i.e. poor/middle income countries) than in rich countries? (2 pts)

1. This question is on fixed vs. floating exchange rates.

1. Describe the major benefits and costs of fixing exchange rates. (2pts)

2. Explain how monetary policy coordination works in a fixed exchange rate system.  What is/are the major obstacle(s) to such coordination? (2 pts)

a. Find information on the trade balance for the US and find the comparable measures for the country you have chosen (UK) for the past three years. Discuss the trend of the balance of trade for each country.

b. For the currency in each country (the dollar in the US and whatever the currency is called in the country you chose), find the exchange rates for the previous three years. For the US, find the exchange rate with the Euro, the Japanese Yen, and the British Pound. For your selected country, find the exchange rate with the US dollar, the Euro, and the Japanese Yen. Describe the trend of exchange rates for each currency over the three-year period — is the currency appreciating or depreciating against the other currencies? Explain how this pattern of the currency can impact the economy.

The discussion forum this week involves Business Method Patents. First, in your view, what should the standard be for a business method patent? Second, please include a discussion of whether you think that Amazon should be able to patent the One-Click method of ordering goods AND whether you think Facebook should be able to patent a process that “dynamically provides a news feed about a user of a social network.”

Briefly explain the two sources of consumer welfare increase in the Krugmanís model of monopolistic competition when markets integrate

The private marginal benefit associated with a product’s consumption is PMB = 350 − 4Q and the private marginal cost associated with its production is PMC = 6Q. Furthermore, the marginal external damage associated with this good’s production is MD = 4Q.

a. What is the market price and quantity? (6 points) b. What is the social optimum price and quantity?

b. To correct the externality, the government decides to impose a tax of T per unit sold. What tax T should it set to achieve the social optimum?

Two firms compete under Cournot competition with constant marginal costs c1 = 2 and c2 = 4. The market demand is P=18-Q .

a) Compute the market share of each firm, the market price, and the total quantity produced in the market.

b) [CHALLENGING] You later hear that the marginal cost of firm 2 increased, and realize that the market price is now P = 9. What is the new marginal cost c2 ?

please also show how to find the |df/dt|, L, M AMD LOCAL TRUNCATION ERRROR, GLOBAL ERROR