Suppose a central bank decides it is appropriate to increase its policy interest rate in order to increase rates more generally throughout the economy.

1. In the contex of the money market , if the money demand function is stable ,explain how the change in policy would be reflected in the money supply.

2. Suppose the economy is a closed one. What effect will there be on investment, on aggregate expenditure? Include diagrams in your answer.

3. What additional effect will there be on aggregate expenditure if the economy were an open one?

4. How will aggregate demand be affected, whether we treat the economy as closed or open? Illustrate in a

   diagram.

A6-11. Suppose a central bank decides it is appropriate to increase its policy interest rate in order to increase rates more generally throughout the economy. (a) Inthecontextofthemoneymarket,ifthemoneydemandfunctionisstable,explainhowthechangeinpolicy would be reflected in the money supply. [4] (b) Suppose the economy is a closed one. What effect will there be on investment, on aggregate expenditure? Include diagrams in your answer. [4] (c) What additional effect will there be on aggregate expenditure if the economy were an open one? [4] (d) How will aggregate demand be affected, whether we treat the economy as closed or open? Illustrate in a diagram. [4]

3) A torsion spring is used in a hand-held spring clamp. The jaws of the clamp are 1.5 inches from the pivot. The spring angle is 45° when the clamp is closed and 0° when the clamp is open. Determine torsional spring constant, clamping force when closed and clamping force when open. Use units of torque/rev for torsional spring constant. Include leg length in Na calculations.

d = 0.078 in OD = 0.396 in Nb = 3.25 θfree = 90° music wire legs L1 = L2 = 1.5 in

kθ _____________ Fclosed _____________ Fopen _____________

Phase	Name of Phase	gNa or gKhigher?	V-gated Na+ channel state (open, opening, closing, closed, inactivated)	V-gated K+ channel state (open, opening, closing, closed, inactivated)
1	Resting Potential	?	?	?
2	Threshold	?	?	?
3	Rising Phase	?	?	?
4	Falling Phase	?	?	?
5	Undershoot	?	?	?

2. Does resting membrane potential and equilibrium potential of sodium both change during an action potential?

3. How is the action potential affected with a defect in the Na+/K+ pump and a deleterious mutation in the leak channels?

a) In the first trading day of 1998, Hang Seng Index closed at 10680.60, while in the last trading day of 2017, it closed at 29919.15. What is the average annual growth rate of Hang Seng Index in this 20-year?                              

b) The following yield curve is observed of the U.S. Treasury securities on 28th October 2019:

Maturity (Year)	Yield Rate (%)
1	1.60
2	1.64
3	1.65

Suppose the pure expectation theory is correct. Forecast the expected one-year yield rate of one year later and of two years later respectively.  

The Solow Model was originally conceived for a single-good, closed economy. In the ensuing decades, it has been expanded to account for endogenous growth and free trade. We want to consider what kinds of phenomena such models should encompass. Imagine a small developing country initially with a closed economy, with income per capita well below that of advanced nations. The policymakers in this country are considering opening the country to trade. Consider this country’s initial steady state and growth, and discuss how these might change were the country to allow free trade. In particular, focus your response on

1. What would the closed economy steady-state income be relative to advanced nations (and what may cause it to differ)? What about consumption?

2. Would you expect an accelerated speed of growth (capital accumulation) under free trade as compared to a close economy or not? Why yes or why no? What about changes in consumption?

3. What new opportunities for growth may be created by free trade?

Consider the unity feedback negative system with an open-loop function G(s)= K (s^2+10s+24)/(s^2+3s+2).

a. Plot the locations of open-loop poles with X and zeros with O on an s-plane.

b. Find the number of segments in the root locus diagram based on the number of poles and zeros.

c. The breakaway point (the point at which the two real poles meet and diverge to become complex conjugates) occurs when K = 0.02276. Show that the closed-loop system has repeated poles for this K.

d. The break-in point (the point at which the complex conjugate poles meet and diverge to become real) occurs when K = 10.97. Show that the closed-loop system has repeated poles for this K.

e. Find the poles of the closed-loop system when K = 6.

f. Sketch the two segments of the root locus.

g. Check your work using MATLAB. It is not necessary to submit the output.

We are in mid-October 2020. You have just been put in charge, until July 2021, of revenue risk management for

a soybean oil producer that processes about 500,000 bushels of soybeans a month (soybeans = input, soybean oil

and meal = main outputs). The policy of your predecessor in this job has always been to buy beans on the cash

(i.e., spot) market.

a. (2.5 points) Before leaving, your predecessor entered into a commodity swap agreement (i.e., a bundle of

forward contracts) to sell the company’s entire output (mostly soya oil and meal) to General Mills. This

commodity swap is set to run monthly for the next two years. Which of the following events would leave your

company strictly better off during your tenure as its risk manager?

(i) Over the course of the next 9 months (till you leave), the spot price of beans goes down but the spot

prices of the refined products (oil and meal) goes down even faster.

(ii) Over the course of the next 9 months, the spot price of beans stays level while the spot prices of the

refined products goes up.

(iii) The price of beans goes up – who cares what happens to the price of the products.

(iv) None of the above.

Explain briefly.

0. Case #3

BlueDot Company budgeted the following manufacturing overhead costs for the 2020 fiscal year.

Accounting & finance (support department) Human resources (support department) Industrial design (operating department) Production (operating department)

$500,000 $110,000 $315,000 $175,000

Budgeted services provided by the Accounting & Finance department:

Human resources 20% Industrial design 30% Production 50%

Budgeted services provided by the Human Resources department:

Accounting & finance 15% Industrial design 65% Production 20%

Required:

1. (A) Using the information provided above, allocate costs from the supporting departments

   to the operating departments using the Direct Method.

2. (B) Ignoring your calculations in (A), use the information provided above to allocate costs

   from the supporting departments to the operating departments using the Step Down

   method with the Accounting & Finance department allocating first.

3. (C) Ignoring your calculations in (A) and (B), use the information provided above to

   allocate costs from the supporting departments to the operating departments using the

   Step Down method with the Human Resources department allocating first.

4. (D) Ignoring your calculations in (A) to (C), use the information provided above to allocate

   costs from the supporting departments to the operating departments using the Reciprocal Method using either linear equations or repeated iterations.