HARD
12TH CBSE
IMPORTANT
Earn 100

Differentiate between devaluation and depreciation.

Important Questions on Open Economy Macroeconomics

HARD
12TH CBSE
IMPORTANT
Introductory Macroeconomics>Chapter 6 - Open Economy Macroeconomics>Q 8
Would the central bank need to intervene in a managed floating system? Explain why.
HARD
12TH CBSE
IMPORTANT
Introductory Macroeconomics>Chapter 6 - Open Economy Macroeconomics>Q 9
Are the concepts of demand for domestic goods and domestic demand for goods the same?
MEDIUM
12TH CBSE
IMPORTANT
Introductory Macroeconomics>Chapter 6 - Open Economy Macroeconomics>Q 10
What is the marginal propensity to import when M = 60 + 0.06Y? What is the relationship between the marginal propensity to import and the aggregate demand function?
HARD
12TH CBSE
IMPORTANT
Introductory Macroeconomics>Chapter 6 - Open Economy Macroeconomics>Q 11
Why is the open economy autonomous expenditure multiplier smaller than the closed economy one?
HARD
12TH CBSE
IMPORTANT
Introductory Macroeconomics>Chapter 6 - Open Economy Macroeconomics>Q 12
Calculate the open economy multiplier with proportional taxes, T = tY , instead of lump-sum taxes as assumed in the text.
HARD
12TH CBSE
IMPORTANT
Introductory Macroeconomics>Chapter 6 - Open Economy Macroeconomics>Q 13
Suppose C = 40 + 0.8Y D, T = 50, I = 60, G = 40, X = 90, M = 50 + 0.05Y (a) Find equilibrium income. (b) Find the net export balance at equilibrium income (c) What happens to equilibrium income and the net export balance when the government purchases increase from 40 and 50?
HARD
12TH CBSE
IMPORTANT
Introductory Macroeconomics>Chapter 6 - Open Economy Macroeconomics>Q 14
Suppose C = 40 + 0.8Y D, T = 50, I = 60, G = 40, X = 90, M = 50 + 0.05Y. If exports change to X = 100, find the change in equilibrium income and the net export balance.
HARD
12TH CBSE
IMPORTANT
Introductory Macroeconomics>Chapter 6 - Open Economy Macroeconomics>Q 15
Suppose the exchange rate between the Rupee and the dollar was Rs. 30=1$ in the year 2010. Suppose the prices have doubled in India over 20 years while they have remained fixed in USA. What, according to the purchasing power parity theory will be the exchange rate between dollar and rupee in the year 2030.