Intermediate Macroeconomics Questions

Question 1 (a) (6 marks)

Please discuss the following:

i) What is monetary policy's effect on investment, particularly on business fixed investment, and housing investment?

ii) What is fiscal policy's effect on investment, particularly on business fixed investment, and housing investment.

Question 1 (b) (4 marks)

Please discuss the following:

i) What are the short-term volume effects of an exchange rate depreciation?

ii) What are the long-term volume effects of an exchange rate depreciation?

Syllabus from the following reference link:

Dornbush, R., Fisher, S. and Startz, R. (2018). Macroeconomics. 13th Edition, New York: McGraw Hill.