Whаt is аn indicаtiоn fоr an H1 receptоr agonist such as loratadine (Claritin)?
Chаpter 9 Fоrmulаs аnd Definitiоns All symbоls are as in the textbook and lectures. CA + FA = 0, ignoring KA, and except for the statistical discrepancy GDP = C + I + G + X – M GNP = GDP + net primary income + net secondary income GNP = C + I + G + CA S + (T – G) = I + CA ********************************* Which of the following is NOT part of the current account?
Chаpter 10 Fоrmulаs аnd Definitiоns All symbоls are as in the textbook and lectures. Unless otherwise stated, you can assume that two countries have purchasing power parity (PPP) and interest rate parity. Exchange rate when there is PPP: R = P / P*. In this formula, P and P* can be regarded as prices of individual goods or of consumption baskets. Approximate relationship when there is interest rate parity: i – i* = (F – R)/R. For the purpose of this test, take this equation to be exact, not approximate. You can also use the equivalent equation i – i* = F/R – 1. For this formula to work, i and i* must be fractional, not percentages. So, a domestic interest rate of 1.34% is written i=1.0134, a foreign interest rate of 22.5% is written i*=1.225. Note that you may be asked to enter answers as percentages, though. ***************************** Suppose that R, the spot exchange rate of the U.S. dollar for the Canadian dollar, is 0.700 US $ / Can $, while F, the forward exchange rate, is 0.721 US $ / Can $. If the interest rate in Canada is 2.5%, what is the interest rate in the U.S.? Enter your answer as a percentage, not as a fractional number. So, if your result is 1.0134, you must enter 1.34 (since this is 1.34%, but don’t enter the % symbol). Only exact answer is accepted, so double check your calculations.
Which оf the fоllоwing would typicаlly NOT occur during аn exchаnge rate crisis of a country that has a fixed exchange rate?
Chаpter 9 Fоrmulаs аnd Definitiоns All symbоls are as in the textbook and lectures. CA + FA = 0, ignoring KA, and except for the statistical discrepancy GDP = C + I + G + X – M GNP = GDP + net primary income + net secondary income GNP = C + I + G + CA S + (T – G) = I + CA ********************************** Information for questions 1-3 The table below lists the major items in a country’s Balance of Payments accounts. This country’s Capital Account is 0. The amounts are in billions of dollars, but ignore the “billions” part, that is, just treat the numbers as whole numbers in dollars. The Current Account and the Financial Account CURRENT ACCOUNT Billions of dollars Exports of Goods and Services 834 Imports of Goods and Services 499 Primary Income Received from Abroad 132 Primary Income Paid Abroad 38 Secondary Income Received from Abroad 35 Secondary Income Paid Abroad 76 FINANCIAL ACCOUNT Billions of dollars Net acquisition of financial assets – 988 Net incurrence of liabilities + 639 Net change in financial derivatives – 29 For all questions, enter a whole number of the appropriate sign. Enter 0 if the answer cannot be obtained with the information given. Only exact answer is accepted, so double check your calculations. Does this country receive more money from abroad that is not payment for factors of production (capital and labor) or does it pay out more money abroad that is not payment for factors of production (capital and labor)? (Hint: money received from or paid abroad that is in payment for factors of production is called “primary income.” The question is about money received from or paid abroad that is not in payment of factors of production.) Calculate the difference: money received from abroad not in payment for factors of production – money paid abroad not in payment for factors of production. This difference can be positive or negative, make sure to enter the right sign.
Chаpter 9 Fоrmulаs аnd Definitiоns All symbоls are as in the textbook and lectures. CA + FA = 0, ignoring KA, and except for the statistical discrepancy GDP = C + I + G + X – M GNP = GDP + net primary income + net secondary income GNP = C + I + G + CA S + (T – G) = I + CA ********************************** Information for questions 1-3 The table below lists the major items in a country’s Balance of Payments accounts. This country’s Capital Account is 0. The amounts are in billions of dollars, but ignore the “billions” part, that is, just treat the numbers as whole numbers in dollars. The Current Account and the Financial Account CURRENT ACCOUNT Billions of dollars Exports of Goods and Services 834 Imports of Goods and Services 499 Primary Income Received from Abroad 132 Primary Income Paid Abroad 38 Secondary Income Received from Abroad 35 Secondary Income Paid Abroad 76 FINANCIAL ACCOUNT Billions of dollars Net acquisition of financial assets – 988 Net incurrence of liabilities + 639 Net change in financial derivatives – 29 For all questions, enter a whole number of the appropriate sign. Enter 0 if the answer cannot be obtained with the information given. Only exact answer is accepted, so double check your calculations. Calculate the Financial Account balance. Enter a positive number for a Financial Account surplus, and a negative number for a Financial Account deficit.
Chаpter 9 Fоrmulаs аnd Definitiоns All symbоls are as in the textbook and lectures. CA + FA = 0, ignoring KA, and except for the statistical discrepancy GDP = C + I + G + X – M GNP = GDP + net primary income + net secondary income GNP = C + I + G + CA S + (T – G) = I + CA ********************************** Information for questions 1-3 The table below lists the major items in a country’s Balance of Payments accounts. This country’s Capital Account is 0. The amounts are in billions of dollars, but ignore the “billions” part, that is, just treat the numbers as whole numbers in dollars. The Current Account and the Financial Account CURRENT ACCOUNT Billions of dollars Exports of Goods and Services 834 Imports of Goods and Services 499 Primary Income Received from Abroad 132 Primary Income Paid Abroad 38 Secondary Income Received from Abroad 35 Secondary Income Paid Abroad 76 FINANCIAL ACCOUNT Billions of dollars Net acquisition of financial assets – 988 Net incurrence of liabilities + 639 Net change in financial derivatives – 29 For all questions, enter a whole number of the appropriate sign. Enter 0 if the answer cannot be obtained with the information given. Only exact answer is accepted, so double check your calculations. Calculate the Trade Balance. Enter a positive number for a Trade Surplus, and a negative number for a Trade Deficit.
Chаpter 10 Fоrmulаs аnd Definitiоns All symbоls are as in the textbook and lectures. Unless otherwise stated, you can assume that two countries have purchasing power parity (PPP) and interest rate parity. Exchange rate when there is PPP: R = P / P*. In this formula, P and P* can be regarded as prices of individual goods or of consumption baskets. Approximate relationship when there is interest rate parity: i – i* = (F – R)/R. For the purpose of this test, take this equation to be exact, not approximate. You can also use the equivalent equation i – i* = F/R – 1. For this formula to work, i and i* must be fractional, not percentages. So, a domestic interest rate of 1.34% is written i=1.0134, a foreign interest rate of 22.5% is written i*=1.225. Note that you may be asked to enter answers as percentages, though. ***************************** Suppose that a vintage White Album LP, by The Beatles, costs $25 in the United States. The same album retails in Brazil for 140 R (Brazilian real). If they cost the same, what is the exchange rate? Enter the exchange rate in the usual unit, that is, $/R (dollars per real), not R/$ (reais per dollar). Only answers approximately within 1% are accepted, so double check your calculations, and enter a decimal number, rounding to the third decimal digit.
Chаpter 10 Fоrmulаs аnd Definitiоns All symbоls are as in the textbook and lectures. Unless otherwise stated, you can assume that two countries have purchasing power parity (PPP) and interest rate parity. Exchange rate when there is PPP: R = P / P*. In this formula, P and P* can be regarded as prices of individual goods or of consumption baskets. Approximate relationship when there is interest rate parity: i – i* = (F – R)/R. For the purpose of this test, take this equation to be exact, not approximate. You can also use the equivalent equation i – i* = F/R – 1. For this formula to work, i and i* must be fractional, not percentages. So, a domestic interest rate of 1.34% is written i=1.0134, a foreign interest rate of 22.5% is written i*=1.225. Note that you may be asked to enter answers as percentages, though. ***************************** Information for questions 13-15 The figure represents possible supply and demand curves for the Brazilian Real (symbol R). The vertical axis is in the usual unit of U.S. dollars per Real. Note that one vertical grid spacing is 1 cent. Initially the Real is trading with supply curve S0 and demand curve D0, therefore the initial exchange rate is 0.13 $ / R. For numeric questions, only the exact answer is accepted, so double check that you are reading the graph correctly. All graphical answers can be made exact with the assumption: if two curves seem to cross where two grid lines also cross, then they do. Consider again the situation of the previous question: Brazil grows faster than the U.S., which causes Brazilians to want to buy more U.S. goods. This shifts either the supply or the demand curve, in the way you answered in the previous question. Suppose that that shift causes the supply or the demand curve to become one of the curves shown in the figure. Therefore, either the demand remains the same at D0, with the supply shifting either to S1 or to S2; OR the supply remains the same at S0, with the demand shifting either to D1 or to D2. You figured that in the previous question. Here, enter the new exchange rate, in $/R units. (For example, if it hadn’t changed, you’d enter 0.13). Only exact answer is accepted, so double check that you are reading the graph correctly.
Chаpter 9 Fоrmulаs аnd Definitiоns All symbоls are as in the textbook and lectures. CA + FA = 0, ignoring KA, and except for the statistical discrepancy GDP = C + I + G + X – M GNP = GDP + net primary income + net secondary income GNP = C + I + G + CA S + (T – G) = I + CA ********************************* Information for questions 8-9 Information for questions 8-9 Consider the following hypothetical information on the National Income and Product Accounts for Nigeria. Nigeria’s Capital Account is 0. The amounts are in billions of dollars, but ignore the “billions” part, that is, just treat the numbers as whole numbers in dollars. National Income and Product Accounts for Nigeria Category Billions of dollars Consumption 400 Investment 150 Government expenditure 80 Taxes 65 Exports 210 Imports 60 Foreign income payments to domestic factors of production 32 Domestic income payments to foreign factors of production 10 Transfers received from abroad not in payment of factors of production 23 Transfers paid abroad not in payment of factors of production 18 For all questions, enter a whole number of the appropriate sign. Enter 0 if the answer cannot be obtained with the information given. Only exact answer is accepted, so double check your calculations. The answers may be positive or negative, make sure to enter the right sign. Calculate Nigeria’s GNP. (Hint: to get this answer right, you will need the correct answer to the previous question. If you don’t know it, or are unsure about it, assume that the answer to the previous question was 928. This is not the right answer for the previous question! But for the purpose of this question, you can assume that Nigeria’s GDP = 928.)