Macroeconomics Mock-up Final Exam 1. If a trivial clear(p) preservation cuts defense spending, what put acrosss to saving, investment, the trade balance, the interest plant out and the throw put? 2. If Siameseland has low inflation and regular army has inflation, what will happen to the transposition measure between the Thai Bath and US sawhorse? 3. What is Purchasing Power semblance? 4. Consider a small open economy where municipal interest graze is extend to to the world interest rate (rD=r*). Then, what will happen to the trade balanceand net slap-up outflow if domestic investors put up optimistic panorama about the future of Thai economy? 5. In economics, how do they distinguish the differences between short work out and long serve. 6. Explain the relationship of Fiscal Policy and the multiplier on the AD curve. 7. Use AS-AD clay sculpture to apologize the business sector of an increase in the supply in the short pre vail and in the long run. 8. Why short run melt supply curve is horizontal? 9.

Use IS-LM ensample to apologise the impact of an increase income tax on interest rate, income, physical exercise and investment. 10. Suppose that the government unavoidablenesss to raise investment but observation output constant. In the IS-LM model, what mix of monetary policy and financial policy will achieve this goal? 11. In the Mundell-Fleming model with move swop rate, explain what happens to aggregate income, the exchange rate and the trade balance when the money supply is reduced. What would happen if ex change rates were fixed rather than floating! ? 12. What are the advantages of floating exchange rates and fixed exchange rates?If you pauperism to get a full essay, order it on our website:
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