Macroeconomics of Open Economies

Assignment-1 (DUE Thursday 11th April 2016)

This assignment is worth 20% of your overall assessment in this unit.

Submission: Before commencing the assignment you should read the following sections in the Unit Outline:

  • Submission and assessment policy
  • Plagiarism

You must submit an electronic copy to DSO. See also the notes at the end of the assignment.

Answer all three of the following questions.

代写 Deakin MAE 302: Macroeconomics of Open Economies


1. If investors expect an increase in the interest rate paid on Euro deposits, how the Australian exchange rate will change?  Explain. (6 marks)

2. Analyze the effects of a temporary decrease in the European money supply on the dollar/euro exchange rate using both the Australian money market and the foreign exchange market.  (6 marks)

3. Discuss the short run and long run effect of a permanent exogenous increase in domestic money supply on the money market and foreign exchange market.  (8 marks)

(In all answers, use figures if necessary. No referencing required if only the prescribed textbook is consulted. For other sources, use references. See next page for additional notes)

a.        All assignments are to be submitted online in the area provided in DSO. They are counted as ‘on time’ if submitted by 11:59pm AEST or AEDST on the due date. If necessary, you can look up your local time at
When submitting online, you must check that you have submitted work correctly by following the instructions provided in DSO.
b.       The following declaration relating to academic honesty must be made and submitted along with any assignment:
“I certify that the attached work is entirely my own (or, where submitted to meet the requirements of an approved group assignment, is the work of the group), except where material quoted or paraphrased is acknowledged in the text. I also declare that it has not been submitted for assessment in any other unit or course.”
A Faculty Assignment Attachment Sheet containing this declaration is available online in DSO. A copy of this sheet must be completed and attached with the online submission. On-campus students must attach a signed copy to the printed version of the assignment. Off-campus students submitting a printed assignment should attach the form provided with your unit materials.

c.        No extensions will be considered for the assignment submission due date unless a written request is submitted and negotiated with the designated Unit Chair/Coordinator.

d.       Assignments or other assessment tasks conducted during the semester submitted late without an extension being granted will not be marked. These will be held until final grading and may be taken into consideration in a pass/fail situation.

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