(SOLVED) Suppose that capital controls take the form of a

total
Suppose that capital controls take the form of a total Suppose that capital controls take the form
of a total ban on capital inflows, but all capital outflows are permitted. Also suppose that initially
the current account surplus is zero. Determine the effects of a temporary increase in total factor
[…]

The domestic central bank increases the supply of money under The domestic central bank
increases the supply of money under a flexible exchange rate regime, leading to a depreciation
of the nominal exchange rate. If the government had imposed capital controls before the
increase in the money supply, would this […]

Suppose a flexible exchange rate There is an increase in Suppose a flexible exchange rate.
There is an increase in the degree of uncertainty in credit markets, which affects firms but not
consumers, as considered in Chapter 9.(a) Determine the effects on aggregate output, the price
level, the exchange rate, […]

Suppose in the model that government expenditures increase temporarily Determine Suppose
in the model that government expenditures increase temporarily. Determine the effects on
aggregate output, absorption, the current account surplus, the nominal exchange rate, and the
price level. What difference does it make if the exchange rate is flexible or […]

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Suppose that there is a cost to carrying out transactions Suppose that there is a cost to carrying
out transactions in the foreign exchange market. That is, to purchase one unit of foreign
currency requires e(1 + a) units of domestic currency, where e is the nominal exchange rate and
[…]

Suppose in the second model in this chapter with production Suppose, in the second model in
this chapter, with production and investment, that there is an increase in credit market frictions,
as studied in Chapter. What are the effects on aggregate output and the current account
surplus? Comment on these […]

In Chapter 13 we studied how persistent total factor productivity In Chapter 13, we studied how
persistent total factor productivity shocks in a closed economy can provide an explanation for
business cycles. In the second model studied in this chapter, with production and investment,
determine the effects of a persistent […]

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