<p>I got a string of B's and a string of D's I think.</p>
<p>and your string of Ds was longer than your string of Bs?</p>
<p>well actually, if someone can tell me if either 1) the loanable funds longrun supply curve is vertical or 2) the loanable funds market determines the nominal interest rate, I can tell if a string of four Ds was right or not...</p>
<p>ALRIGHTY 48 HOURS OVERRRR
i took it thursday morning and it is now saturday night for me so its definitely more than 48 hours.</p>
<p>i'll just try to remember what i did..</p>
<ol>
<li>the first question- economy running below full employment, i had a graph with SRAS and AD but the LRAS was a bit to the right. so the graph looked like a X with the | to the right side of the intersection.</li>
</ol>
<p>if nothing was done to fix it.. i forgot which one it was, but either AD or SRAS shifted back to the long run equilibrium.
i forgot the next few small questions.. something about loanable funds market is it?.. anyways i'll move on first</p>
<ol>
<li><p>the price of oil or smth decreases.. which means the supply increases because the price of input is cheaper
and i forgot the rest..</p></li>
<li><p>in A and B the demand for canadian dollar decreases..
C the canadian dollar depreciates..
D the canadian export increases because it is cheaper relative to south korea's won.</p></li>
</ol>
<p>ok now they are all very brief and i am not sure if they are all correct, so if i'm wrong just feel free to correct me and share ur answers as well :D</p>
<p>^^^ this must be form B</p>
<p>i got form B?? seriously??
oh well dam.. i am an international student and i guess that explains it..</p>
<p>seriously no one got a canadian dollar/south korean won exchange rate question for number 3??</p>
<p>now who will i discuss it with ......</p>
<p>wait till they officialy release the q's on collegeboard.......then i can remember all my answers lol</p>
<p>we had us dollar with japanese yen and oil price increased so supply decreases</p>
<p>on that question on the MC, about the two countries, A and B. A had inflation of 20%, and B had inflation of 2%. It asked us to pick the correct statement from the multiple choice. I said that, over time, country A's currency would have depreciated relative to country B's currency--was that the right answer?</p>
<p>alright, for the questions:
1. below full emplyment ,so vertical line to the right of equilibrium.
increase in price of oil shifts AS to the left (stagflation)
effect on supply of dollars: all i knew is that the dollar would depreciate because of stagflation, so i said there was an increase in the supply of dollars, which decreased its value.
2. Demand for money increases with income, so interest rates increase on Sm v. Dm graph.
Savings v. Investment graph for loanable funds market, increase in savings would cause interest rates to decrease.
Nominal interest rate stays the same, but real interest rate decrease to 4%.
3. Unemployment would not change because of switch from full-time to part-time, because they are both included as equals.
Unemployment compensation decrease would decrease the natural rate of unemployment.
On the phillips curve, shift vertical line to the left on inflation vs. unemployment graph.</p>
<p>Quote:
on that question on the MC, about the two countries, A and B. A had inflation of 20%, and B had inflation of 2%. It asked us to pick the correct statement from the multiple choice. I said that, over time, country A's currency would have depreciated relative to country B's currency--was that the right answer?
unquote</p>
<p>yes i think thats the answer. i thought of it as, in the first year one dollar buy one yen. later, 10 dollars buy 1 yen. it loses its power and buys less of the other currency, which means it depreciated..
mm but i forgot which the other choices were..</p>