Entries by Hannah Wangui

Using simple diagrams, show how each of the following, in theory, affects (i) the supply of food for urban consumers, and (ii) the welfare of a representative agricultural household:

November 27, 2020 in /by

<br/> -Using simple diagrams, show how each of the following, in theory, affects (i) the supply of food for urban consumers, and (ii) the welfare of a representative agricultural household: -a) An output price support -b) A fertilizer subsidy that does not change the output price -c) A cash transfer to agricultural households that does […]

 

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The ___________________ interest parity condition is an example of a no-arbitrage condition.

November 27, 2020 in /by

A: The ___________________ interest parity condition is an example of a no-arbitrage condition. B: An exchange rate regime in which the central bank pre-announces highest and lowest exchange rates it will allow is commonly referred to as a ______________________________________ C: Write formulas for the following conditions UIP: _____________________________ CIP: _____________________________ D: Explain in English (in fifteen words) the meaning of […]

 

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Foreign interest rate is 4 percent per year.

November 27, 2020 in /by

<br/> – Foreign interest rate is 4 percent per year. Home interest rate is 3 percent per year. If a year from now exchange rate is expected to be 10 (units of home currency per unit of foreign currency), what is the exchange rate today, assuming the UIP holds? Show your calculations. -If home interest rate rises to […]

 

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Consider the utility function U(X; Y ) = 3X + ln(Y ). How many of thefollowing statements are true?

November 27, 2020 in /by

Consider the utility function U(X; Y ) = 3X + ln(Y ). How many of thefollowing statements are true? The corresponding indierence curves slope downward at a decreas- ing rate. Preferences are monotonic in both goods. The consumer needs to be compensated with increasing amounts of good X in order to be willing to give […]

 

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