Introduction to

International
Economics
ECM 5921
More Revision Questions

Tutorial Paper 9

ECM 5921 / 2014 Semester 2 / Dr Lilian Chan

(p. 445)

Tutorial Paper 10

ECM 5921 / 2014 Semester 2 / Dr Lilian Chan

(p. 473)

Tutorial Paper 10

ECM 5921 / 2014 Semester 2 / Dr Lilian Chan

(p. 493)

Tutorial Paper 10

ECM 5921 / 2014 Semester 2 / Dr Lilian Chan

(p. 494)

Suppose the government is dissatisfied with the current level of

GDP and would like to conduct an expansionary policy (to raise

the level of GDP). What type of policy (i.e. fiscal or monetary)
should the government conduct if:
a) the economy is under a fixed exchange rate regime?
b) the economy is under a flexible exchange rate system?
Explain.

ECM 5921 / 2014 Semester 2 / Dr Lilian Chan