ECS3350 Coursework 1

ECS3350 Coursework 1

1. The deadline for submission is 18:00 on Friday 2^nd Dec 2022.

2. Students are required to type the answers on the coursework word file, save the word file and submit it online to MyUnihub/ECS3350/Assessment and Feedback/Assessment 1/ Coursework 1 Submission Point.

3. Your submitted coursework should be anonymous. No name should show in your work. Also, you should not use your name or student ID as your file name.

4. Each answer should be short. Do feel free to make your points, but make them concise and clear. The word limit for answering each sub-question (except Questions 2b and 2c) is 200. The word limit for Questions 2b and 2c is 400.

5. The bold numbers in brackets indicate the maximum marks to be awarded for that part of the question. The total marks are 50. It contributes to 50% of the final marks.

Question 1: Are the statements below true or false? (1 mark for each) Explain the reasons for your answers. (4 marks for each)

1. A country which decides to join a Monetary Union expects an increased ability to stabilize its output around the full employment level and keep inflation low compared with its initial ability under flexible exchange rates.                                                                    (5 marks)
2. Suppose that the United States is on a bimetallic standard at $35 to one ounce of gold and $3 for one ounce of silver. If new silver mines open and flood the market with silver, the two metals will circulate as before in the US since citizens could exchange their gold currency for silver currency at any time.                                                                                                      (5 marks)

Question 2: The graph below is the exchange rate of Turkish Lira over US dollar (TRY/USD) between January to September 2018. At the beginning of the year, the exchange rate was 3.776 lira per dollar. However, on 13^th August Turkish Lira jumped to 6.9025 lira per dollar, a historic high against the dollar.