Questions for UIP part of the model There are 4 graphing questions, each on its own slide, each worth 15 points. Each is followed by a slide with the appropriate graph as in the notes & videos for Week 9. The questions simply require you to draw in the changes to one or more lines that would result, and show the new points of equilibrium You can do the assignment a few different possible ways - You can print out the ppts, draw in your solutions on the graphs, scan or take a photo, and then upload, OR 0 You can open the PPT, use my arrows, etc. provided on the PPT with the graph (or use your ownno biggie however you want to do that) FRED. - Trade Weighted U.S. Dollar Index: Broad, Goods and Services 127.5 125.0 122.5 120.0 117.5 Index Jan 2006=100 115.0 112.5 110.0 107.5 105.0 2016-01 2016-07 2017-01 2017-07 2018-01 2018-07 2019-01 20 19-07 2020-01 2020-07 Source: Board of Governors of the Federal Reserve System (US) myf.red/g/yogi In the early months of the COVID-19 pandemic, the $US increased due to a "rush to safety" in the global economy. In our model, this would be essentially an increase in E. 1. Using the Z-Y, NX-Y, IS-LM, UIP combined graphs on the next page, what should be happening as a result? Show the shifts on the graphs themselves as I've done in the notes and videos (Week 9).ZZ ZZ IS Y=ZZ iff UIP i pvt LM Co-C, T+I+G+NX i10y 450 iff iff NX Y V Yo Y Yo NX NX Y NX 1FRED. - Trade Weighted U.S. Dollar Index: Broad, Goods and Services 127.5 125.0 122.5 120.0 117.5 Index Jan 2006=100 115.0 1125 110.0 107.5 105.0 2016-01 2016-07 2017-01 2017-07 2018-01 2018-07 2019-01 2019-07 2020-01 2020-07 Source: Board of Governors of the Federal Reserve System (US) myf.red/g/yogi Shortly afterward, the Fed cut the federal funds rate effectively to 0, and the $US weakened by about 10% over the next several months. 2. Using the combined graphs on the next page, show what should be happening as a result of the fall in the federal funds rate-show the shifts on the graphs themselves as I've done in the notes and videos (Week 9).ZZ ZZ IS Y=ZZ iff UIP i pvt LM Co-C, T+I+G+NX i10y 450 iff NX iff Yo Y Yo Y Yo NX Y E NX Y1 NX1Early during the COVlD-19 pandemic, the default risk premium increased. 3. Using the ZY, NX-Y, IS-LM, UIP combined graphs on the next page, what should be happening as a result? Show the shifts on the graph itself. ZZ ZZ IS Y=ZZ iff UIP i pvt LM Co-C, T+I+G+NX i10y 450 iff iff NX Yo Y Yo Y Yo NX . NX Y1 NX1