{"id":182826,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/money-and-monetary-policy-exchange-rate-pass-questions"},"modified":"2018-10-24T09:03:09","modified_gmt":"2018-10-24T09:03:09","slug":"money-and-monetary-policy-exchange-rate-pass-questions","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/money-and-monetary-policy-exchange-rate-pass-questions\/","title":{"rendered":"Money and Monetary Policy \u2013 Exchange Rate Pass Questions"},"content":{"rendered":"<ol>\n<li><strong>What is the main monetary policy tool used by the Reserve Bank of Australia (RBA) and<\/strong><\/li>\n<\/ol>\n<p><strong>why? <\/strong><\/p>\n<ol start=\"2\">\n<li><strong>Briefly discuss the effect of a fall in the cash rate on consumption.<\/strong><\/li>\n<\/ol>\n<ol start=\"3\">\n<li><strong>Suppose the following table illustrates the values of real and potential GDP and the price <\/strong><\/li>\n<\/ol>\n<p><strong>level, if the Reserve Bank of Australia (RBA) does not change its current policy to be more<\/strong><\/p>\n<p><strong>contractionary or expansionary. Suppose that the RBA uses an appropriate policy and is<\/strong><\/p>\n<p><strong>successful in keeping real GDP at its potential level in 2014.<\/strong><\/p>\n<p><strong>&nbsp;<\/strong><\/p>\n<p><strong><em>Year Potential GDP Real GDP Price level<\/em><\/strong><\/p>\n<p>2013 $1.44 trillion $1.44 trillion 144<\/p>\n<p>2014 $1.47 trillion $1.45 trillion 146<\/p>\n<p><strong>&nbsp;<\/strong><\/p>\n<p><strong>State whether each of the following will be higher or lower than if the RBA had taken no<\/strong><\/p>\n<p><strong>action: <\/strong><\/p>\n<p><strong>3a.&nbsp; Real GDP <\/strong><\/p>\n<p><strong>3b.&nbsp; Potential GDP <\/strong><\/p>\n<p><strong>3c.&nbsp; The price level <\/strong><\/p>\n<p><strong>3d.&nbsp; The unemployment rate <\/strong><\/p>\n<p>&nbsp;<\/p>\n<ol start=\"4\">\n<li><strong>How does monetary policy affect the share market? <\/strong><\/li>\n<\/ol>\n<p><strong>&nbsp;<\/strong><\/p>\n<ol start=\"5\">\n<li><strong>Suppose that Australia\u2019s price level is 125, the British price level is 100, and the nominal <\/strong><\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p><strong>exchange rate of pounds to the dollar is \u00a30.60 = $1. Calculate the real exchange rate of<\/strong><\/p>\n<p><strong>pounds to the dollar. Show all workings. <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is the main monetary policy tool used by the Reserve Bank of Australia (RBA) and why? Briefly discuss the effect of a fall in the cash rate on consumption. Suppose the following table illustrates the values of real and <a href=\"https:\/\/www.benedictsol.com\/blogs\/money-and-monetary-policy-exchange-rate-pass-questions\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-182826","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/182826","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=182826"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/182826\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=182826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=182826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=182826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}