# International Economic Relations

## at Maastricht University

can someone help with this question..?
The answers were changed afterwards, all answers were correct. So there was probably something wrong with the question. You should disregard it
can someone help with this question
Take \$100 for example. \$100 = 50 pounds (spot rate) After 1 year: 50 * 1.06 = 53 Future expected exchange rate: \$2.25 * 53 = 119.25. 119.25 - initial \$100 = 19.25 19.25/100 = 19.25%
Hello, can someone explain me what hyperinflation do in chapter 14? what does they mean in : exception of ST failure of PPP : hyperinflation?? thanks!
Last shared documents
Anonymous User shared last document 7 months ago
Any complaints?
No area was marked for this question
Can anyone explain questions 45 to47
Any clue on how to do this ?
S=D => 2P=6-P => 2P+P=6 => P=2 ; world price = 1euro + 0.50 (from the 50% tariff) =1.50 euros ; S= 2*1,50 = 3 and D=6-1,50=4,50 ; D-S= 1,50 so Revenue= 1,50/2 = 0.75
Here it should be the opposite with (E*Py)/Px
Why is A) not correct ?
because the IS is not equal to savings and investment rather it has the same function as the Keneysian cross Y=C(Y-T);I(i);G;TB(EP*/P;Y-T;Y*-T*) and it represent the goods market. Look how the axes are labelled.
No area was marked for this question
where can I find the answer key?
Why is D) not correct ? because trade balance = imports - exports so 2 - 3 = -1... Can someone please explain ?
View 1 more comment
Okay, so both answer D and B are correct I guess
TB=EX-IM=3-2=1 so D is false
No area was marked for this question
IT's only a youtube video right?
it's way more than that
No area was marked for this question
It's a joke right?
No area was marked for this question
How to calculate 4 and 5?
Q 5 = 1,224 x (1,02/1,05) = 1,189 E formula in the book with E expected
Anyone with explanations ? I know someone already answered but I don't get how he finds the numbers
110 (import) - 100 orginal production = 10 x 550 euro = 5500 euro
how to do this ?
how to calculate this?
(0.4)x(-0.1)+(0.6)x(0.3). It's the weighted average.
No area was marked for this question
In the IS LM FX Model, when the Domestic Return increases, does the Trade Balance increase too ?
As domestic return increases, implies also an increase in interest rate. In turn, it decreases investment and domestic output which has a negative effect on TB. The effect is ambiguos
sorry, I was going through the summary and I noticed this graph's explanation is wrong. This is the correct one: non-center is facing a recession --> center country will help by making them increasing their output,: center applies an expansionary monetary policy --> LM curve shits up and lowering the interest rate --> IS has to adapt by shifting up because of the pegged i . Home than follows the same trend: decrease in i --> increase in Y . Thus, the center country gets further from the target output (Y0) but helping the home country to get closer to the target output and reducing the recession.
gj
How do we get to B)?
if one currency appreciates by a certain amount, the other one has to depreciate by the exact same amount I think, otherwise it wouldn't make sense. Furthermore, the euro depreciates by 0.117 dollars, so if you apply the formula, you would get the amount by which the euro depreciated in euro.
Alright make sense now! Thanks
No area was marked for this question
OMG where did you get them from??
No area was marked for this question
hey, noticed some mistakes in the summary so be a bit careful if you go through it :)
No area was marked for this question
it's not complete right? or is it just the most important parts? For example in ch11, not everything from the book is included (like with the pollution stuff)
it'sin paragraph 11.3 which we don't have to do, for chapter 11 is just 11.1 and 11.2
View 1 more comment
0.02+(1.02)* ((1.224-1.16)/1.16) = 0.0763
Complaints??????
Any complaints? :(
Why is it A?
what question?
No area was marked for this question
how is question 39 done?
Thats the 150000-40000=110000
110000 units of imports
its cause they sell fewer goods to home at a lower price. this is also called beggar-thy-neigbour (a loss in foreig PS)
The question mentions that Indonesia decides to maintain capital mobility and fixed exchange rate, so no monetary policy, but then the answer says Indonesia defends the peg by monetary intervention? how is this possible
isnt it cause it says in the main question that this all happens in the short run meaning that monetary policies can happen in a fixed exchange rate system
How is question 4 solved ?
(1+Ih)-1.02*1.224/1.16-7.63% UIP formula
No area was marked for this question
whys isnt D a coorect anwer for 27?
Volume is just all trade so its trade volume would be 5 trillion. Where as its trade to gdp would be all trade (3+2) divided by its gdp So 5/20
ty
How?
1.05=1.02*1.224/X then solve for X which is 1.189 (UIP formula)
Where do the numbers in the table come from ?
No area was marked for this question
Q39, anyone has the right calculation?
110000-100000=10000 10000/1000=10 10*550=5500
How do you calculate this ? Q9
(10.5-9.6)*\$10.000 = 9000 pesos arbitrage 9000 / 9.6 = 937.5 \$ arbitrage
how much do you need to pass this exam? (minimum need)
Any complaints for the IER exam?
no
when will the grades for the presentation & country project be posted online?
I think in maximum 2 weeks
How do you find the answer ?
44) How to find the real wages in this case? (answer is D)
real wage foreign is just the MPL cars since they are only producing cars: 2.5. For the home country they only produce motos so the wage is the mpl of motos but since we need it in terms of cars we multiply that (5) by the world relative price of motos (0.5) and we get 2.5 also in this case.
How do you find the world relative price of motos ?
How do you find the answer ?
Why is it D ?
Why is it C ?
No area was marked for this question
Could anyone help me answer Q44?
Not sure, but I think it's the equilibrium price. at 5 yards/bushel, both countries have 500 bushels
How do you calculate these two questions ?
Q13: can somebody explain why it's d? or tell me where I can find this in the book :)
No area was marked for this question
Is this one correct?
no i really think it is completely wrong
No, the versions are wrong above: so version S in this document is version I and that one in also online in study drive
Can someone tell why it is D ?