1-Monetary policy and fiscal policy both affect investment, particularly business fixed

investment, and housing investment. (Discuss)

2-Show graphically, the short-run and long-run effect of a monetary policy expansion when

both exchange rates and prices are flexible, and capital is perfectly mobile. What happens

during the period of adjustment from the short to the long run?

3-What are the short-and long-term volume effects of an exchange depreciation?