Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Q4. Figure: USD RUB Historical Chart (12 Feb 14 Mar 2022) USDIRUB 30 Day Htstory - Mar 14 00:24 GMT 150 140 mu 130 3
Q4. Figure: USD RUB Historical Chart (12 Feb 14 Mar 2022) USDIRUB 30 Day Htstory - Mar 14 00:24 GMT 150 140 mu 130 3 120 a a '1 110 a If 100 ,' l'cg't9'9' sacyqasqaegf 2022 El Exchangeralesorgmk (a) The graph shows the US Dollar (U SD) to Russian Ruble (RUB) exchange rate. How did the net capital outow of the United States change during these 30 days? (10 marks) (b) Assuming the gross domestic xed capital formation remains unchanged during this period, how would the change in the exchange rate shown by the graph above affect the national saving in the United States? (10 marks) (0) The United States decided to ban imports of Russian oil due to the Russia's military action in Ukraine. What would be the short-run impact on the United States economy? What would be the dilemma (if any) faced by the Fed if it would like to tackle the impact on the economy? Using the ADAS model, explain your answers with the aid of diagrams. (30 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started