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- Business executives and policymakers are often concerned about the competitiveness of Pakistani industry (the ability of industries to sell their goods profitably in world markets). i. How would an increase in the nominal exchange rate ($/Rs) affect competitiveness in the short run? Explain. ii. Suppose you wanted to make domestic industries more competitive but did not want to alter aggregate income. According to the Mundell–Fleming model, what combination of monetary and fiscal policies should you pursue? Graphically explain.Determine whether the following represent examples of fiscal policy, monetary policy, or neither: A. The agricultural sector of Torania increases exports to Asia B. The government of Torania increases excise taxes on alcohol and e-cigarettes C. The central bank of Torania purchases Treasury bills on the Open Market ? ✓ 1. Monetary policy 2. Fiscal policy 3. Neither1. What are so-called heterodox adjustment programs? Are they a sound long-term approach? 2. Use the IS/LM/BP graph to illustrate the effects of a revaluation. Show the fiscal and monetary policy changes that would make it more likely that a revaluation will succeed in eliminating a payments surplus.
- Determine whether these actions are Monetary Policy or a Fiscal Policy. What are the actions taken by the central banks and IMF to address the existing financial problems?ASAP compare monetary and fiscal policy in classical and keynesian model. Be precisePlease use the AD-AS model to analyze the effects of monetary policy and fiscal policy on economic outcome in an open economy: a. Please show graphically the shifting of the AD curve after the Fed conducts an expansionary monetary policy in a closed economy (A closed economy means there is no international trade.). How do the price level and the real GDP change? b. Suppose the economy becomes an open economy. Please revise the result that you get in part (a). Please explain how you get the new result using the AD-AS model. c. Please show graphically the shifting of the AD curve after the federal government conducts an expansionary fiscal policy in a closed economy. Please show the crowding-out effect. How do the price level and the real GDP change? d. Suppose the economy becomes an open economy. Please revise the result that you get in part (c). Please explain how you get the new result based on the AD-AS model.
- a) graphically derive the IS curve in a small open economy. write down shift factors ofiS curve. graphically explain the effect of any one of them on IS curve. b)under fixed exchange rate system and the large open ecomomy expansionary fiscal policy is effective while monetary policy is ineffective.Do you agree with this statement.graphically explain your point of view by using Mundell-Fleming model"Explain how and when fiscal and monetary policy should be used in a market-based system to accommodate economic growth; that is, discuss the most efficacious use of expansionary and contractionary fiscal and monetary policy. a complete analysis with supplemental graphs."Choose TWO of the four macroeconomic objectives studied such as Full employment, Price stability, A high, but sustainable, rate of economic growth. Keeping the balance of payments in equlibrium : State why governments / decision makers try to achieve the TWO macroeconomic objectives Identify key problems which may be encountered when attempting to balance these two objectives Evaluate the macroeconomic measures, employing fiscal and/or monetary policies, which could be taken to balance these two objectives. The structure of your answer to this question should include a brief introduction, main body, and conclusion which summarises your views.
- Monetary and fiscal policy play important roles in economic stimulation and or stabilization in what way and explain,Which of the following would you expect to decrease both interest rates and exchange rates? (Assume exchange rates are stated in terms of foreign currency per domestic currency.) A. contractionary monetary policy B. expansionary monetary policy C. contractionary fiscal policy D. Both B and C.Consider a small open economy with no perfect capital mobility whose Central Bank is explicitly targeting price level. If the government decides to decrease the tax level, what would happen with a new equilibrium domestic price level and real output? What the response of Central Bank should be? Please show your solutions using the model that we have developed (be sure to use BB and GM curves).