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Introduction To Macro_FIN-3AB_20251

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

Compare a fixed rate and a managed float exchange rate

regime. Which central bank will be more active in the foreign exchange market?

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

Consider a managed float exchange rate regime. What is the short-term

correcting mechanism if export and import activities result in a surplus or

deficit?

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

Consider a fixed rate exchange rate regime. What is the

correcting mechanism if export and import activities result in a surplus or

deficit?

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

Competitive advantage suggests that specialization and trade

always result in higher productivity for both countries.

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

Comparative advantage suggests that specialization and trade

always result in higher productivity for both countries.

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

Comparative advantage assumes that people within

a country can adjust their competencies

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

During high inflation, households shift savings into cryptocurrencies. Unemployment remains high despite monetary tightening. What is the best explanation?

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

A central bank introduces a retail CBDC to improve monetary transmission. How might this influence the inflation–unemployment dynamic in the short run?

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

With financial apps providing real-time inflation data, consumers and firms adjust their price expectations quickly. How does this affect the inflation–unemployment relationship?

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

In an economy with increasing automation and online labor platforms, unemployment remains high even when inflation rises. What is the most accurate explanation?

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