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MIDTERM TEST Mock

2023

EC7075 International Money and Finance

Instructions to candidates:

· Answer BOTH questions in essay format, using graphical/mathematical analysis where appropriate.

· The test is available for 24 hours. Do not leave it until the last minute to submit. Any scripts received after the deadline will not be marked and will be awarded a mark of 0.

· Each question requires a maximum of 300 words. Answers that exceed the word count will be subject to appropriate penalties.

· You can type your answers, handwrite them or do a mixture of both. However, you can only submit a single file to Turnitin submission portal in the Assessment and Feedback section on the module Blackboard site and it has to be in either Word or PDF format.

· If you handwrite your answers, scan the answers into one pdf document if possible, or if you cannot scan your answers, photograph each page of your answers on your smart phone, and put the photo images into one word document.

· Check your document is complete and legible before submission, and the pages are submitted in the correct order and the right way up.

· Upload the one PDF or WORD document via Turnitin submission portal in the Assessment and Feedback section on the module Blackboard site.

· If you have any problems in submitting on the day, make sure that you email [email protected] for help to submit WITH your complete answers BEFORE the deadline. DO NOT email your module leader.

Question 1

Discuss the relationship between Purchasing Power Parity, Uncovered Interest Rate Parity and Fisher equation.   (50 marks)

Question 2

Discuss the main features of the M-F model. Use the model to discuss the impacts of an increase in government spending. (50 marks)