You are working as the chief economist for the Ministry of Economy in.pdf

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You are working as the chief economist for the Ministry of Economy in Peru. For each of the following situations, use the IS-LM-FX model to illustrate the effects of the shock. For each case, state the effect of the shock on the following variables (increase, decrease, no change, or ambiguous): Y, i, E, C, I, TB. Assume the government allows the exchange rate to float and makes no policy response. a. Peru's main trading partner, China, enters into a recession. China's output decreases. b. Investors expect a depreciation of the Sol, the Peruvian currency. c. The money supply in Peru increases. d. Peruvian government increases government spending..

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57) All of the following are non-arguments except: a. Americans are materialistic because they are exposed to more advertising than any other people on Earth. b. The world fish catch dropped from its 1989 high of 100 million tons to 97 million tons in 1990 and has remained at about that figure ever since. Harvests have increased in some oceans but have fallen in others. And rising catches of some species are offset by falling catches of others. Breaking with a historical trend of constantly growing catches, stagnation in the global catch now appears likely to continue. 5. Not all mob bosses avoid prison because John Gotti was a mob boss and Gotti was sent to prison. d. A person is dead if his or her brain has stopped functioning. 24) Which of the following is a disjunctive statement? a. Tommy does not like math class nor swimming lessons. b. Laura and Ann are paternal sisters. c. Either you go to school for an education or you search for a job. d. If there is a hurricane, then the electricity will go off. 48) For the following case, determine which of Mill's methods is applicable and determine the conclusion that can be derived: Tom had $250 in his wallet on Friday afternoon. By Sunday night he had only $10 left. He recalled spending $60 on a dinner and a date Friday night. Then he spent $70 on groceries, $40 on gas for his car, and lent $50 to a friend. He didn't recall spending any more money, so the only thing he could think of was that he must have lost the $20 somewhere. a. The method of concomitant variations: conclusion: Losing the money is probably causally connected to the missing $20 . b. The method of residues: conclusion: Losing the money is probably causally connected to the missing $20 . c. The method of agreement; conclusion: Losing the money is probably causally connected to the missing $20 . a. The method of difference: conclusion: Losing the money is probably causally connected to the missing $20 ..

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