Questions from Macroeconomics


Q: Why do central banks intervene in foreign exchange markets? How do

Why do central banks intervene in foreign exchange markets? How do these interventions affect their international reserves and exchange rates?

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Q: How do fixed, floating, and managed (dirty) float

How do fixed, floating, and managed (dirty) float exchange rate regimes differ?

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Q: Why is a theory of consumption also a theory of saving?

Why is a theory of consumption also a theory of saving?

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Q: Differentiate the nominal and real exchange rates between dollars and euros.

Differentiate the nominal and real exchange rates between dollars and euros. Do the two exchange rates move together? Why is appreciation or depreciation of real exchange rates important?

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Q: Go to the St. Louis Federal Reserve FRED database, and

Go to the St. Louis Federal Reserve FRED database, and find data on population and GDP per capita for the following countries, with data codes provided in the table below. a) For each country, calcu...

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Q: The tsunami that hit Japan in April of 2011 was the costliest

The tsunami that hit Japan in April of 2011 was the costliest national disaster in history. The following graph describes Japan’s economy before the tsunami. Assume Japan was at its...

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Q: Describe the life-cycle hypothesis and how it relates to intertemporal

Describe the life-cycle hypothesis and how it relates to intertemporal choice.

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Q: What modifications to the intertemporal choice theory have been suggested by the

What modifications to the intertemporal choice theory have been suggested by the random walk hypothesis and behavioral economics?

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Q: What is the logic behind the intertermporal budget constraint? On what

What is the logic behind the intertermporal budget constraint? On what assumptions is it based, and how is its slope interpreted?

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Q: What do indifference curves show about current and future consumption? Why

What do indifference curves show about current and future consumption? Why do they slope downward? Why are they convex?

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