{"id":62424,"date":"2021-10-19T11:53:22","date_gmt":"2021-10-19T11:53:22","guid":{"rendered":"https:\/\/papersspot.com\/blog\/2021\/10\/19\/ch11-long-run-monetary-approach-read-and-respond\/"},"modified":"2021-10-19T11:53:22","modified_gmt":"2021-10-19T11:53:22","slug":"ch11-long-run-monetary-approach-read-and-respond","status":"publish","type":"post","link":"https:\/\/papersspot.com\/blog\/2021\/10\/19\/ch11-long-run-monetary-approach-read-and-respond\/","title":{"rendered":"Ch11 Long-Run Monetary Approach | Read and Respond"},"content":{"rendered":"<p>376 &#8211; 381; 388 &#8211; 396; 402 &#8211; 406; 412). Type up your answers to the following questions: <br \/>What are the assumptions behind the law of one price? <br \/>What is the meaning of purchasing power parity? <br \/>A basket of goods costs \u00a32,000 in the UK and the same basket costs \u00a5300,000 in Japan. If E\u00a5\/\u00a3 = 160, what is the real exchange rate of yen against pound? Does the PPP hold? Explain. <br \/>What is the difference between nominal exchange rate and real exchange rate? <br \/>What is the difference between absolute PPP and relative PPP? <br \/>What is the relationship between money supply growth, GDP growth and inflation based on the quantity theory of money? <br \/>If a country increases its money supply growth rate from 2% to 4% per year, all else constant, what will be the impact on its inflation rate and exchange rate according to the monetary approach? <br \/>What is the difference between the quantity theory of money and the general theory of money? <br \/>What is real interest parity? <br \/>How does a fixed exchange rate act as a nominal anchor to potentially help control a country&#8217;s rate of inflation? <\/p>\n","protected":false},"excerpt":{"rendered":"<p>376 &#8211; 381; 388 &#8211; 396; 402 &#8211; 406; 412). Type up your answers to the following questions: What are the assumptions behind the law of one price? What is the meaning of purchasing power parity? A basket of goods costs \u00a32,000 in the UK and the same basket costs \u00a5300,000 in Japan. If E\u00a5\/\u00a3 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[22],"class_list":["post-62424","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-economics"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/62424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=62424"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/62424\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=62424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=62424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=62424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}