Question

(v) (5 points) What kind of F(K, AL) 3. (i) (5 points) In an open economy, the slope of IS curve is much flatter than that of a closed economy. True or False? Explain. (ii) (5 points) Explain the relative PPP (iii) (10 points) Does an individual invest his/her money into Turkish Lira (TL) if the interest rate of TL is 15%, interest rate of dollar is %3 and expected depreciation in TL is 12%? Explain it. (iv) (10 points) The current nominal exchange rate is E=16.10 TL/$, if the inflation rate in Turkey and USA are 70% and 8% respectively, what do you expect to happen to nominal exchange rate at the end of the period? (v) (5 points) What happens to net export when there is an increase in interest rate? (vi) (5 points) Why do countries persistently devalue their currencies? points) What is difference between GDP and GNP? If GNP is think of this country?

          (v) (5 points) What kind of
F(K, AL)
3. (i) (5 points) In an open economy, the slope of IS curve is much flatter
than that of a closed economy. True or False? Explain.
(ii) (5 points) Explain the relative PPP
(iii) (10 points) Does an individual invest his/her money into Turkish Lira
(TL) if the interest rate of TL is 15%, interest rate of dollar is %3 and expected
depreciation in TL is 12%? Explain it.
(iv) (10 points) The current nominal exchange rate is E=16.10 TL/$, if the
inflation rate in Turkey and USA are 70% and 8% respectively, what do you
expect to happen to nominal exchange rate at the end of the period?
(v) (5 points) What happens to net export when there is an increase in
interest rate?
(vi) (5 points) Why do countries persistently devalue their currencies?
points) What is difference between GDP and GNP? If GNP is
think of this country?

(v) (5 points) What kind of
F(K, AL)
3. (i) (5 points) In an open economy, the slope of IS curve is much flatter
than that of a closed economy. True or False? Explain.
(ii) (5 points) Explain the relative PPP
(iii) (10 points) Does an individual invest his/her money into Turkish Lira
(TL) if the interest rate of TL is 15%, interest rate of dollar is %3 and expected
depreciation in TL is 12%? Explain it.
(iv) (10 points) The current nominal exchange rate is E=16.10 TL/, if the
inflation rate in Turkey and USA are 70% and 8% respectively, what do you
expect to happen to nominal exchange rate at the end of the period?
(v) (5 points) What happens to net export when there is an increase in
interest rate?
(vi) (5 points) Why do countries persistently devalue their currencies?
points) What is difference between GDP and GNP? If GNP is
think of this country?

Added by Walter A.

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