Economics Quick Questions Thread (2 Viewers)

[jeffwu95]

yup

 

[RishBonjour]

yup

Lol, my mate asked me that question. That sure is tricky. A lot of students would have lost a mark there.

Btw, how long do you guys spend on each essay? and write about many words? (i know quality > quantity)

 

[jeffwu95]

a switch from attracting foreign savings in the form of loans to selling assets to foreigners would:
a) reduce net foreign liabilities
b) reduce net external debt and net foreign liabilities
c) reduce CAD
d) restrain from external debt whilst doing nothing to net foreign liabilities

 

[boredj]

the answers d

 

[deswa1]

Lol, my mate asked me that question. That sure is tricky. A lot of students would have lost a mark there.

Btw, how long do you guys spend on each essay? and write about many words? (i know quality > quantity)

About an hour on each. Maybe 1600-1700 words, not sure though, just guessing.

And quality+quantity>quality

 

[jeffwu95]

why does a flexible exchange rate decrease the effects of structural change originating overseas? (2 marks)

 

[RishBonjour]

the answers d

why?

Is the question basically asking in a stuffed up way, teh effect of moving from foreign borrowing to equity?
in that case

Net foreign liabilities should increase?

 

[jeffwu95]

i dunno the wording really confused me

 

[boredj]

why?

Is the question basically asking in a stuffed up way, teh effect of moving from foreign borrowing to equity?
in that case

Net foreign liabilities should increase?

your net foreign liabilities isnt affected in any way. and thats the only answer

 

[RishBonjour]

your net foreign liabilities isnt affected in any way. and thats the only answer

net foreign liabilities = net foreign debt + equity.

You increase your foreign equity, hence you increase net foreign liabilities.

 

[RishBonjour]

About an hour on each. Maybe 1600-1700 words, not sure though, just guessing.

And quality+quantity>quality

Dont depress me please

 

[deswa1]

Yeah its D because net foreign liabilities will be unchanged as you are simply moving debt to equity. C could potentially be correct depending on the state of the economy but D will always be correct.

 

[deswa1]

net foreign liabilities = net foreign debt + equity.

You increase your foreign equity, hence you increase net foreign liabilities.

No because you are increasing your foreign equity at the expense of foreign debt- see the switch between foreign savings (debt) and selling assets (equity)

 

[RishBonjour]

Yeah its D because net foreign liabilities will be unchanged as you are simply moving debt to equity. C could potentially be correct depending on the state of the economy but D will always be correct.

I'm stupid.

more questions!

also: how long do you guys spend on MC in tests?
I generally do them in 8-10 mins. If anything looks weird, i leave it will the end of the exam.

 

[jeffwu95]

i posted one a page back
"why does a flexible exchange rate decrease the effects of structural change originating overseas? (2 marks)"

 

[deswa1]

I'm stupid.

more questions!

also: how long do you guys spend on MC in tests?
I generally do them in 8-10 mins. If anything looks weird, i leave it will the end of the exam.

Umm, between 5-15 minutes, it depends. Remember that one mark dropped on MC is a comparatively difficult mark to make up later. Aim for 20 here. Then do short answer before the hour- I overanswer every question though so if you didn't, you could probs do it in less. Then my better essay in an hour and then my weaker essay in the last hour.

 

[boredj]

net foreign liabilities = net foreign debt + equity.

You increase your foreign equity, hence you increase net foreign liabilities.

how are u increasing ur equity, your just redirecting ur debt into another form. basically ur decreasing ur debt but now ur giving foreigners ur assets. therefore u are still have that net foreign liability

 

[boredj]

lagged response ^^

 

[RishBonjour]

lagged response ^^

ahah, yeah, sorry for doubting your answer

exchange rate question is weird.

anything do to with "shock absorption" ?

Yeah, I haven't dropped a mark in mc YET.
short answers i write a lot to, just put a few extra points to confirm the mark.

 

[jeffwu95]

well would the source of international structural change be sourced from competition