economics assignment

Suljettu Julkaistu May 13, 2003 Maksettu toimituksen yhteydessä
Suljettu Maksettu toimituksen yhteydessä

the assignment is a macroeconomic assignment with three multiple choice questions and one long answer question. The long answer question is as follows: (maximum 500 words) 1. Suppose that Australia economy is characterised by high d, low f, low e and high g, and that the Reserve Bank of Australia (the Australian central bank) conducts monetary policy by controlling an exogenous money supply. Because the exchange rate of the A$ is falling, the Reserve Bank decides to tighten monetary policy by reducing the exogenous money supply. Using interacting goods and money markets, analyze the effects on: (i) aggregate income (ii) the interest rate (iii) consumption (iv) saving (v) imports (vi) the speculative demand for money (vii) the transactions demand for money. (12 marks) The A$ exchange rate then stops falling. Both the government and the central bank would like the economy to grow rather than contract, and turn to you for advice. Would you advise the use of fiscal policy or monetary policy? (2 marks) For the policy action you have chosen, and using interacting goods and money market analysis, explain the effects on aggregate income and the interest rate. (6 marks) In both parts of your answer, use diagrams which incorporate the above magnitudes for the behavioural coefficients.

## Deliverables

1) Complete and fully-functional working program(s) in executable form as well as complete source code of all work done. 2) Installation package that will install the software (in ready-to-run condition) on the platform(s) specified in this bid request. 3) Complete ownership and distribution copyrights to all work purchased.

## Platform

Microsoft word/ windows xp

PHP

Projektin tunnus: #2934850

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Etäprojekti Aktiivinen May 24, 2003