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Question: i need solutions of question 23 and 4...

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I need solutions of question 2,3 and 4.

1. 151 The graphic below shows actual inflation (this is labeled headline inflation in the chart) and inflation targets for a number of countries in 2014 September 2014 or latest Senden! South Korea United States Australia Japan India Using only information in the chart and frameworks developed in this class (ie,not subsequent events), please answer the following questions a. [5 points] At the time of the chart, which monetary policy would you have recommended for Sweden? Please explain in 1- 2 sentences b. [5 points] At the time of the chart, which monetary policy would you have recommended for Brazil? Please explain in 1-2 sentences. c. [5 points] If both Japan and China were to achieve their inflation targets, what do you expect would happen to the value of the Japanese Yen relative to the Chinese RMB in the long run? Please select one and explain in 1-2 sentences. The Yen will appreciate The Yen will depreciate 2. 1201 A recent issue of the Economist magazine reports that Brazil has a fiscal budget deficit of 7% of GDP The current account deficit is 1% of GDP. The current inflation rate in Brazil is 4% (about the inflation target). The current unemployment rate in Brazil is 11.6%, which is higher than the long run average. The Brazilian government is attempting to reduce the fiscal budget deficit.
a. [5 points] If the Brazilian fiscal authorities are successful in reducing the budget deficit, what would you expect to happen to GDP growth in the short run in Brazil? Please select one response and explain in 1-2 sentences. Increase No change b. [5 points] What impact would you expect reducing the budget deficit to have on unemployment? Please select one response and explain in 1-2 sentences. Increase Decrease No change c. [5 points] All else equal, what effect would you expect reducing the budget deficit to have on the current account deficit? Please select one response and explain in 1-2 sentences. Decrease No change Increase d. [5 points Continue to assume that the Brazilian government is successful in reducing the fiscal budget deficit. Assume the Brazilian central bank has similar objectives to the US Federal Reserve. Which monetary policy would you expect the Brazil central bank to adopt? Please select one response and explain brief Increase the money supply Decrease the money supply Leave the money supply unchanged 3. [101 The Economist magazine reports that AFTER long recessions, Brazil and Argentina stll cheer when good economic news comes out. In tiny Uruguay sandwiched between them, it is old hat, On March 22nd the central bank reported that GDP grew by 2.7% in 2017, bringing the countrys growth streak to 15 years, the longest expansion in its history. Uruguays growth since 20 when global prices of commodities started to fall, puts its neighbours to shame (see chart). Using the frameworks developed in this course, please describe (briefly) the factors that you expect have contributed to Uruguays strong and sustained economic growth relative to Argentina and Brazil over the past 15 years.
4. 1301 The Financial Times recently reported that, The Bank of Japan kept interest rates on hold today but lowered its inflation expectations for the 2019 fiscal year. The BoJ kept its short-term interest rate target at minus 0.1%, in a seven to two vote, and reaffirmed its plan of buying Japanese government bonds to maintain yield on the 10-year note at around 0 %. In its quarterly outlook report, the bank also lowered its forecast for core inflation.. Meanwhile, official data showed today that Japans exports in December fell the most in more than two years, dragged by plummeting shipments to China and r markets as weak global demand and U.S.-Sino trade frictions take their toll on the economy. Exports in December fell 3.8% from a year earlier, bigger than a 1.9% drop expected by economists. For the purposes of this question, assume that the Bank of Japan (Japans central bank) has objectives similar to the US Federal Reserve. egional a. [5 points] Based on the information in the quote above, what are your expectations regarding the Bank of Japans monetary policy in 2019? Please select one response Increase money supply Decrease money Leave money supply unchanged supply b. [5] Please explain briefly c. [5] How would you expect the monetary policy you forecast in part a. to affect the exchange rate of the Yen? Please select one response Yen appreciate Yen depreciate en unchanged d. [5] Please explain briefly e. [5] How would the exchange rate impact you forecast in part c. affect companies that produce in Japan and export? Please select one response Help Hurt No affect f. [5] Please explain briefly
5. [101 A recent issue of the Economist magazine reports that the Netherlands has a current account surplus of 10.1% of GDP a. [5 points] What would you expect to be true regarding investors perceptions of the attractiveness of investing in assets in the Netherlands relative to assets in other countries? Please select one response and explain in 1-2 sentences. Less Similar attractiveness More attractive attractive b. [5 points] Over the past decade, there have been repeated calls by policy-makers to reduce global imbalances (current account deficits and current account surpluses). Assume the Netherlands reduced its current account surplus. What would you expect to happen to private investment in the Netherlands as a result? Please explain in 1-2 sentences. 6·[30] Trade in Africa Source: https://www.economist.com/finance-and- economics/2017/12/07/african-countries-are-building-a-giant free-trade-area frican countries They have long traded with the world, now they want to trade with each other are building a giant free-trade area Dec 7th 2017 KAMPALA AFRICA must unite, wrote Kwame Nk president, in 1963, lamenting that African countries sold raw materials to their former colonisers rather than trading among themselves. His pan-African dream never became reality. Even today, African countries still trade twice as much with Europe as they do with each other. But that spirit of unity now animates a push for a Continental Free-Trade Area (CFTA), involving all 55 countries in the region. Negotiations began in 2015, aimed at forming the CFTA by the end of this year. In contrast to the WTO, African trade talks are making progress. The chart below shows average educational attainment for men aged 15-49 in 2015. The chart shows considerable variation in educational attainment across African countries. (A map of Nkrumah, Ghanas first
aged 15-49 in 2015. The chart shows considerable variation in educational attainment across African countries. (A map of Africa with country names is included for your reference.) Source: https://www.nature.com/articles/nature25761 Africa Imagine a 2-country, 2-product world where the two countries are South Africa and Ethiopia. The two products are computers and apparel. Assume computers are more skill intensive than apparel. a. [5] Before trade, where would you expect computers to have a lower relative price? Please select an answer South Africa Ethiopia Same in both countries b. [5] Please explain briefly Now assume that trade barriers fall between South Africa and Ethiopia c. [5] Which product would you expect Ethiopia to export? Please select an answer. Computers Apparel Ethiopia would not export
d. [5] Please explain briefly. Now assume that Ethiopia invests in education and raises educational attainment. Nothing changes in South Africa. e. [5] What would you expect to happen to the amount of trade between Ethiopia and South Africa in the simple 2-product, 2- country model? Increase Decrease Stay the same f. [5] Please explain briefly.
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