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    Fiscal Policy

    Effect of Fiscal Policy

    Determine whether each of the following would make fiscal policy more effective or less effective: a. A decrease in the marginal propensity to consume b. Shorter lags in the effect of fiscal policy c. Consumers suddenly becoming more concerned about permanent income that about current income d. More accurate measurement of t

    6 questions on International Macroeconomics that deal with fixed exchange rate system, foreign exchange reserves, floating currency, exchange rate devaluations, current accounts, BOP crisis, domestic and foreign interest rates, short-run level of output, expansionary fiscal policy.

    1. Suppose Mexico fixes its exchange rate against the U.S. dollar. Explain the effect on the foreign reserve holdings of the Mexican central bank if the level at which the exchange rate is pegged turns out to be lower than the one which would be obtained if the exchange rate had been allowed to float freely (in other words, Mex


    1.If the Euro costs $1,5841 Canadian, what is your cost for a E200pair of showes? 2.If the canadian dollar depreciates by 10 percent, how much more do the shoes cost? 3.If Bombardier sells its aircraft in U.S. dollars, 70 percent of its cost are production are U.S.dollar-denominated, by 30 percent of its costs are Canadia