Question 1
What is a key characteristic of a fixed exchange rate system?
Question 2
In a fixed exchange rate system, fiscal policy is relatively more potent due to what factor?
Question 3
Which equation is used to analyze the equilibrium in the open economy's goods market?
Question 4
In the IS-LM Model, what does a shift in the IS* curve represent?
Question 5
Which aspect of the economy differs fundamentally in the long-run analysis between fixed and floating exchange rate systems?
Question 6
Why is fiscal policy less effective in influencing the economy under floating exchange rates?
Question 7
What key component does fiscal policy not affect directly in a floating exchange rate system?
Question 8
How does an expansive monetary policy impact the exchange rate under the floating system?
Question 9
What is not an implication mentioned for Chapter 15 based on the lecture's conclusion?
Question 10
How does the central bank adjust interest rates in a floating exchange rate system?
Question 11
What is a significant difference in the impact of fiscal policy under fixed versus floating exchange rate systems?
Question 12
What are the endogenous variables in the model under a fixed exchange rate system?
Question 13
Which component of aggregate demand is not influenced by changes in interest rates under a floating exchange rate system?
Question 14
In an open economy under a fixed system, what is the central bank's role in maintaining the exchange rate?
Question 15
What outcome does a fiscal expansion have under fixed exchange rates?