Old Exam
UNIVERSITY OF ILLINOIS
Department of Economics
Economics 420 / 523
International.
Economics
Mid-Semester Examination
October 20, 2005
Professor W. Baer
a) Bretton WoodsSystem
Marshall-Lerner conditions .'.F' Purchasing power parity,
......_..-.--d) Amortization,
,-~"
~
Offer curve,
,:'\ '~"--/ f-) Foreign trade mu1. tipl.ier. ~
g); Impact of capital. movementon exchange
Autonomouscapital. movements
'"
.$J
i
.\.~i
h-!J.
,"
~. !.. .
".....
to' :·-.r of citizens
l.iV£ng ab~oad to families
X: 5; premiumpaid -'iO-"foreign insurance company: 6 ; credit of IMF
:,8 ; amortization payments to banks abroad; 20; exports; 80: l.oan of World lh 'li- -"-"" _-...z:UL.;c D~- co~-+""·-"'';o-'· 1.•• :;: '-'01" ~,~t","'l_;J' 1,{)-"
. 1
-~- •..• 'i:'r' ;;,-oe1.""~$+ --~
~--""'--"'•
'::1
__
-_ interest payinents forei.gn creditors:
6; bank deposits abroad of ci tizens of X: 9; credit extended -hy foreign suppliers of machinery to importers of X: 5; foreign fixms buys out a l.ocal firm: 3; profit ramittance abroad: 2; tourism abroad; 4; payment for use of foreign technology: 3; errors and omissions?
ImpO--rt;s
i.n
~':90;, remi. tances t .10.
-,
-.ot..
. a) Makeup a balance of payments statement·.
h) Is this country in surplus or deficit?
Justify
surpl.us or deficit.
•••.
_~
,
your defi.nition
of
a) "External and internal equilibria are often contradictory goals and the poli6y-~er is forced to choose between one or the other.
,#
.,
~
I,.:
. ..i~.
,'1'"
~
.
.chtlr··
,\ ~ .. ...1
.
,;...~.
() /{( .',.;"
.
'("'-
.~
,~
11
To what '~tent does this apply 1- to th:~~~':t~~~?"";:( t~~::(){"-:"!("!/ system of pegged exchange rates? In your answer make use of somef:,f/ 1" •.[ 1/ j
!, f/ relevant analytical tools. JJ
,';. ,
'O€'219f 1. The US will specialize in producing TV's.
b) In regards to the production of DVD players, both
Department of Economics
Economics 420 / 523
International.
Economics
Mid-Semester Examination
October 20, 2005
Professor W. Baer
a) Bretton WoodsSystem
Marshall-Lerner conditions .'.F' Purchasing power parity,
......_..-.--d) Amortization,
,-~"
~
Offer curve,
,:'\ '~"--/ f-) Foreign trade mu1. tipl.ier. ~
g); Impact of capital. movementon exchange
Autonomouscapital. movements
'"
.$J
i
.\.~i
h-!J.
,"
~. !.. .
".....
to' :·-.r of citizens
l.iV£ng ab~oad to families
X: 5; premiumpaid -'iO-"foreign insurance company: 6 ; credit of IMF
:,8 ; amortization payments to banks abroad; 20; exports; 80: l.oan of World lh 'li- -"-"" _-...z:UL.;c D~- co~-+""·-"'';o-'· 1.•• :;: '-'01" ~,~t","'l_;J' 1,{)-"
. 1
-~- •..• 'i:'r' ;;,-oe1.""~$+ --~
~--""'--"'•
'::1
__
-_ interest payinents forei.gn creditors:
6; bank deposits abroad of ci tizens of X: 9; credit extended -hy foreign suppliers of machinery to importers of X: 5; foreign fixms buys out a l.ocal firm: 3; profit ramittance abroad: 2; tourism abroad; 4; payment for use of foreign technology: 3; errors and omissions?
ImpO--rt;s
i.n
~':90;, remi. tances t .10.
-,
-.ot..
. a) Makeup a balance of payments statement·.
h) Is this country in surplus or deficit?
Justify
surpl.us or deficit.
•••.
_~
,
your defi.nition
of
a) "External and internal equilibria are often contradictory goals and the poli6y-~er is forced to choose between one or the other.
,#
.,
~
I,.:
. ..i~.
,'1'"
~
.
.chtlr··
,\ ~ .. ...1
.
,;...~.
() /{( .',.;"
.
'("'-
.~
,~
11
To what '~tent does this apply 1- to th:~~~':t~~~?"";:( t~~::(){"-:"!("!/ system of pegged exchange rates? In your answer make use of somef:,f/ 1" •.[ 1/ j
!, f/ relevant analytical tools. JJ
,';. ,
'O€'219f 1. The US will specialize in producing TV's.
b) In regards to the production of DVD players, both