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Past Exam for ECON 741 - ADV INTRNTL ECON I with Vegh at Maryland (UMD)

Exam Information

Material Type:Final
Professor:Vegh
Class:ECON 741 - ADV INTRNTL ECON I
Subject:Economics
University:University of Maryland
Term:--
Keywords:
  • Printing Money
  • The Economy
  • Behind (of)
  • Explanation
  • Fixed Exchange Rate
  • Overshooting
  • Assumptions
  • Different Models
  • Consumption
  • Representative
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Sample Document Text

Department of Economics, UCLA International Finance (Econ 281B) Winter 2003 Prof.CarlosA.Végh FINALEXAM This is a closed-book, three-hour exam. The points corresponding to each question (which add up to 180 points) are indicated in parentheses. True, false, or uncertain (50 points) Indicate whether you consider each of the following statements to be TRUE, FALSE, OR UNCERTAIN. In each case, give a brief explanation of your answer. (Your grade will depend heavily on your explanation.) 1. Consider handout # 2 with the following two modifications: (i) the good is durable and (ii) there are Leontief preferences over time (i.e., there is no intertemporal consumption substitution). Then a temporary trade liberalization would have no welfare effects. 2. Consider handout # 8. Suppose that the monetary authority announces that it will sterilize the fall in real money demand at T. Then the crisis will occur at t ? 0. 3. In a two-period endowment economy with uncertain period-2 output and incomplete mark...

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