Monetary Policy

Question 1

Mundell-Fleming Model

Question 2

Marshall-Lerner Condition

Question 3

LM curve

Answer 3

• affected by monetary policy

Question 4

IS curve

Answer 4

• not affected by monetary policy
• only affected by changes on the goods market
  -> changes in Investment, Government spendings, Taxes or Net Exports

Question 5

Uncovered interest parity condition

Answer 5

UIP
- describes how interest rate impacts the exchange rate
r = r* + (Ee – E)/E