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question 5 marks)

1. Cooperative stabilization can help countries have a Öxed exchange rate regime and
avoid high ináation.
2. The existence of international currency traders makes the exchange rate determinate.
3. Suppose we introduce money in the model with capital. The Tobin e§ect suggests
that an increase in the ináation rate will increase the stock of capital and consumption of
(c1; c2) by individuals.
4. Consider the three-period OLG model whereÖnancial intermediaries are subject to a
positive reserve requirement. A higher growth rate of money supply leads to a higher price
level.
5. (10 marks) Understanding the velocity of money and the quantity theory of money
in Australia. Economists measure the velocity of money as P Y =M, where P Y and M
are output (GDP) and money supply in nominal terms. The ratio P Y =M indicates the
frequency at which a unit of money is used to purchase Önal goods and services included
in nominal GDP. In this question, we explore how the velocity of money has changed in
Australia from 1975 to 2019 using money supply measured by M1 and M3. We then use
the empirical Öndings to examine if the quantity theory of money holds in Australia. Please
submit your data (keeping three decimal places) as an appendix to your assignment.
(a) Use data from Australian Bureau of Statistics to Önd nominal output P Y . In
particular, you can use data series 5206.0 (Table 3, Column CG) to Önd quarterly Gross
Domestic Product (P Y ).
(b) From the Statistics Tables of the Reserve Bank of Australia, Önd money supply
M measured by M1 and M3 in Table D3, Column K and Column L. Please convert the
monthly data into quarterly data by keeping the values of money supply for March, June,
September and December in each year.
(c) Calculate the velocity of money P Y =M using M1 and M3, respectively. Plot the
two time series, velocity of money using M1 and velocity of money using M3, in one chart.
Note that output is measured in millions \$ and money supply is measured in billions \$.
It might be useful to convert them into the same units. Please use time (quarters) as the
x-axis and velocity of money as the y-axis in your time series plot.
(d) From your plot in part (c), how do velocity of M1 and velocity of M3 change over
time? Can you o§er an explanation to rationalize your Öndings? Explain.
(e) What does the quantity theory of money suggest? Do the empirical Öndings you
1
obtain from part (c) and part (d) support the quantity theory of money in Australia?
Explain
6. (10 marks) The Rate of Return Equality in practice. Consider the following data
series from the Federal Reserve Bank of St. Louis (FRED) between Jan 1, 1981 and Jan 1,
2019.
Capital Stock at Constant National Prices for United States, Millions of 2017 U.S.
Dollars, Annual, Not Seasonally Adjusted (RKNANPUSA666NRUG);
Net value added of corporate business: Net operating surplus, Billions of Dollars, Annual, Not Seasonally Adjusted (W322RC1A027NBEA);
Consumer Price Index: Total All Items for the United States, Index 2015=100, Annual,
Long-Term Government Bond Yields: 10-year: Main (Including Benchmark) for the
United States, Percent, Annual, Not Seasonally Adjusted (IRLTLT01USA156N);
Consumer Price Index: Total All Items for the United States, Growth Rate Previous
Period, Annual, Not Seasonally Adjusted (CPALTT01USA657N).
(a) Construct the return on capital by using the net operating surplus divided by capital
stock. Notice that the data on capital stock is in millions of 2017 U.S. dollars, but the data
on net operating surplus is in billions of dollars. Please convert the data series properly to
Önd the return on capital and include your calculated return on capital in your appendix.
(b) Construct the real interest rate on long-term government bonds. Notice that the
long-term government bond yields are nominal interest rate. Please convert the yields into
real interest rates and include your calculated return on government bonds in your appendix.
(c) Plot the return on capital that you Önd in part (a) and the return on government
bonds that you Önd in part (b) in one graph, where the horizontal axis shows the years.
Does the rate of return equality hold from your answers in part (a) and part (b)?

Compelling correspondence is essential to the achievement all things considered but since of the changing idea of the present working environments, successful correspondence turns out to be more troublesome, and because of the numerous impediments that will permit beneficiaries to acknowledge the plan of the sender It is restricted. Misguided judgments.In spite of the fact that correspondence inside the association is rarely completely open, numerous straightforward arrangements can be executed to advance the effect of these hindrances.

Concerning specific contextual analysis, two significant correspondence standards, correspondence channel determination and commotion are self-evident. This course presents the standards of correspondence, the act of general correspondence, and different speculations to all the more likely comprehend the correspondence exchanges experienced in regular daily existence. The standards and practices that you learn in this course give the premise to additionally learning and correspondence.

This course starts with an outline of the correspondence cycle, the method of reasoning and hypothesis. In resulting modules of the course, we will look at explicit use of relational connections in close to home and expert life. These incorporate relational correspondence, bunch correspondence and dynamic, authoritative correspondence in the work environment or relational correspondence. Rule of Business Communication In request to make correspondence viable, it is important to follow a few rules and standards. Seven of them are fundamental and applicable, and these are clear, finished, brief, obliging, right, thought to be, concrete. These standards are frequently called 7C for business correspondence. The subtleties of these correspondence standards are examined underneath: Politeness Principle: When conveying, we should build up a cordial relationship with every individual who sends data to us.

To be inviting and polite is indistinguishable, and politeness requires an insightful and amicable activity against others. Axioms are notable that gracious “pay of graciousness is the main thing to win everything”. Correspondence staff ought to consistently remember this. The accompanying standards may assist with improving courtesy:Preliminary considering correspondence with family All glad families have the mystery of progress. This achievement originates from a strong establishment of closeness and closeness. Indeed, through private correspondence these cozy family connections become all the more intently. Correspondence is the foundation of different affiliations, building solid partners of obedient devotion, improving family way of life, and assisting with accomplishing satisfaction (Gosche, p. 1). In any case, so as to keep up an amicable relationship, a few families experienced tumultuous encounters. Correspondence in the family is an intricate and alluring marvel. Correspondence between families isn’t restricted to single messages between families or verbal correspondence.

It is a unique cycle that oversees force, closeness and limits, cohesiveness and flexibility of route frameworks, and makes pictures, topics, stories, ceremonies, rules, jobs, making implications, making a feeling of family life An intelligent cycle that makes a model. This model has passed ages. Notwithstanding the view as a family and family automatic framework, one of the greatest exploration establishments in between family correspondence centers around a family correspondence model. Family correspondence model (FCP) hypothesis clarifies why families impart in their own specific manner dependent on one another ‘s psychological direction. Early FCP research established in media research is keen on how families handle broad communications data. Family correspondence was perceived as an exceptional scholastic exploration field by the National Communications Association in 1989. Family correspondence researchers were at first impacted by family research, social brain science, and relational hypothesis, before long built up the hypothesis and began research in a family framework zeroed in on a significant job. Until 2001, the primary issue of the Family Communication Research Journal, Family Communication Magazine, was given. Family correspondence is more than the field of correspondence analysts in the family. Examination on family correspondence is normally done by individuals in brain science, humanism, and family research, to give some examples models. However, as the popular family correspondence researcher Leslie Baxter stated, it is the focal point of this intelligent semantic creation measure making the grant of family correspondence special. In the field of in-home correspondence, correspondence is normally not founded on autonomous messages from one sender to one beneficiary, yet dependent on the dynamic interdependency of data shared among families It is conceptualized. The focal point of this methodology is on the shared trait of semantic development inside family frameworks. As such, producing doesn’t happen in vacuum, however it happens in a wide scope of ages and social exchange.

Standards are rules end up being followed when performing work to agree to a given objective. Hierarchical achievement relies significantly upon compelling correspondence. So as to successfully impart, it is important to follow a few standards and rules. Coming up next are rules to guarantee powerful correspondence: clearness: lucidity of data is a significant guideline of correspondence. For beneficiaries to know the message plainly, the messages ought to be sorted out in a basic language. To guarantee that beneficiaries can without much of a stretch comprehend the importance of the message, the sender needs to impart unmistakably and unhesitatingly so the beneficiary can plainly and unquestionably comprehend the data.>