Question

1.2. Activities Exercise No. 1 (60 points) Suppose an economy for which we know that there is a fixed exchange rate of 1500 diner/$. Explain and graph (IS/LM and money market) what effect it would have on the interest rate if the current exchange rate is 800 diner/$. Indicators / Levels of achievement Achieved Moderately achieved Not achieved Explanation Explain correctly Considering the relationship cause effect the model IS/LM and market monetary Taking into account the cause effect relationship (30 points) Explain correctly Considering the relationship the IS/LM model causes an effect Taking into account the cause effect relationship (15 points) Does not explain correctly and does not take into account the cause effect relationship (0 points) Chart Changes are identified produced in IS/LM and money market. (30 points) Change is identified produced in IS/LM. (15 points) No change is identified produced in IS/LM neither in market exchange rate. (0 points) Exercise No. 2 (40 points) Draw a graph and explain what effect the implementation of an expansionary fiscal policy had in an open economy with full capital mobility and a fixed exchange rate. Indicators / Levels of achievement Achieved Moderately achieved Not achieved Explanation Explain correctly Considering the relationship cause effect (10 points) Correctly explains that there are 2 errors in the cause-effect relationship. (5 points) Does not explain correctly and does not take into account the cause effect relationship (0 points) Chart Changes are identified produced in IS/LM incorporating all the model variables Considering the relationship cause effect (30 points) The change is identified produced IS or LM considers the cause-effect relationship (15 points) NO identify the changes produced in IS/LM incorporating all the model variables Considering the relationship cause effect (0 points)

290

likes
1448 views

Answer to a math question 1.2. Activities Exercise No. 1 (60 points) Suppose an economy for which we know that there is a fixed exchange rate of 1500 diner/$. Explain and graph (IS/LM and money market) what effect it would have on the interest rate if the current exchange rate is 800 diner/$. Indicators / Levels of achievement Achieved Moderately achieved Not achieved Explanation Explain correctly Considering the relationship cause effect the model IS/LM and market monetary Taking into account the cause effect relationship (30 points) Explain correctly Considering the relationship the IS/LM model causes an effect Taking into account the cause effect relationship (15 points) Does not explain correctly and does not take into account the cause effect relationship (0 points) Chart Changes are identified produced in IS/LM and money market. (30 points) Change is identified produced in IS/LM. (15 points) No change is identified produced in IS/LM neither in market exchange rate. (0 points) Exercise No. 2 (40 points) Draw a graph and explain what effect the implementation of an expansionary fiscal policy had in an open economy with full capital mobility and a fixed exchange rate. Indicators / Levels of achievement Achieved Moderately achieved Not achieved Explanation Explain correctly Considering the relationship cause effect (10 points) Correctly explains that there are 2 errors in the cause-effect relationship. (5 points) Does not explain correctly and does not take into account the cause effect relationship (0 points) Chart Changes are identified produced in IS/LM incorporating all the model variables Considering the relationship cause effect (30 points) The change is identified produced IS or LM considers the cause-effect relationship (15 points) NO identify the changes produced in IS/LM incorporating all the model variables Considering the relationship cause effect (0 points)

Expert avatar
Andrea
4.5
82 Answers
Impact on interest rate graphically represented with full capital mobility and implementation of expansionary policy.

[Step-by-Step]

Exercise No. 1:

1. Initial exchange rate: 1500 \, \text{diner/}\$.
2. Current exchange rate: 800 \, \text{diner/}\$.

Graph IS/LM and money market:

\text{Interest rate (r)} \to \text{Y-axis}
\text{Income (Y)} \to \text{X-axis}

Given the fixed exchange rate:

1. Due to deviation from the fixed exchange rate, the monetary authority must intervene by decreasing the money supply.
2. Money supply affects LM curve.
3. Graph IS/LM representing decreased money supply shifts LM leftward.

Answer: Graph showing changed interest rates with LM curve shift.

Exercise No. 2:

1. Expansionary fiscal policy stimulates aggregate demand shifting IS curve rightward.
2. In open economies with full capital mobility and fixed exchange rates:
- Increased income raises demand for money.
- Central bank intervenes to maintain exchange rate by increasing money supply.
3. LM curve shifts rightward accommodating the shift in IS.

Graph IS/LM representing these interactions:

\text{Graph Explanation:}
- Axis same as IS/LM graph (Interest rate on Y, Income on X).

Answer: Graph with both IS and LM shifts accommodating new fiscal policy.

Frequently asked questions (FAQs)
Find the real roots of the cubic equation 2x^3 + 3x^2 - 4x + 1 = 0.
+
What is the product of 43 multiplied by 92?
+
Math question: Find the number of solutions in the interval [0, 2π] where f(x) = tan x reaches its maximum value.
+
New questions in Mathematics
Let the vectors be u=(-1,0,2) , v=(0,2,-3) , w=(2,2,3) Calculate the following expressions a)<u,w> b) &lt;2u- 5v,3w&gt;
a ferry travels 1/6 of the distance between two ports in 3/7 hour. the ferry travels at a constant rate. at this rate, what fraction of the distance between the two ports can the ferry travel in one hour?
³√12 x ⁶√96
4.2x10^_6 convert to standard notation
4x567
To make brine, José buys 1 kg of salt and pays 12 pesos. If he buys 4 kg, they charge him 48 pesos, but for 100 pesos they sell him 9 kg. What is the constant of proportionality?
Divide 22 by 5 solve it by array and an area model
-27=-7u 5(u-3)
Credit title that represents a payment order. This model, which emerged in Brazil, can only be issued in two specific situations: in the purchase and sale of commercial products or in the provision of services. Select the correct alternative: Question 6Answer The. Present value B. Promissory note w. Present value d. Duplicate It is. Bill of exchange
(5y 9)-(y 7)
Emma is on a 50 m high bridge and sees two boats anchored below. From her position, boat A has a bearing of 230° and boat B has a bearing of 120°. Emma estimates the angles of depression to be about 38° for boat A and 35° for boat B. How far apart are the boats to the nearest meter?
89, ÷ 10
Convert 5/9 to a decimal
A machine produces 255 bolts in 24 minutes. At the same rate, how many bolts would be produced in 40 minutes?
Next%C3%B3n%2C+we+are+given+a+series+of+Tri%C3%A1angles+Right%C3%A1angles+%3Cbr%2F%3Ey+in+each+one+of+them+ are+known+2%28two%29+measurements+of+sides.+%3Cbr%2F%3Elet's+determine+all+trigonom%C3%A9tric+ratios.
Buffalo Company makes and sells shampoo. Each unit requires $1.40 labor costs, material costs per unit are $0.90 and other variable costs are $0.30. It sells shampoo for $4.45 to retailers. Fixed costs are $15,000. It sold 25,000 units in the current month. What is the Break-Even point in units? What is the Break-Even point in dollars? What is the contribution margin of Buffalo Company?
The grading on a $159,775 house comes to $3974.75. What percent of the total cost is this? (Express your answer to the nearest hundredth percent.)
Solve the following 9x - 9 - 6x = 5 + 8x - 9
-Please answer to the following questions: What is the price elasticity of demand? Can you explain it in your own words? What is the price elasticity of supply? Can you explain it in your own words? What is the relationship between price elasticity and position on the demand curve? For example, as you move up the demand curve to higher prices and lower quantities, what happens to the measured elasticity? How would you explain that? B-Assume that the supply of low-skilled workers is fairly elastic, but the employers’ demand for such workers is fairly inelastic. If the policy goal is to expand employment for low-skilled workers, is it better to focus on policy tools to shift the supply of unskilled labor or on tools to shift the demand for unskilled labor? What if the policy goal is to raise wages for this group? Explain your answers with supply and demand diagrams. Make sure to properly cite and reference your academic or peer-reviewed sources (minimum 2).
3(x-4)=156