Short Answer/Essay Questions

Short Answer Questions (5 Questions) In this section, you need to comment on whether the statements below are true or false, or answer the question that is being asked. Justify your answers to obtain full credit.

Sudden Stops are events where we typically observe current account reversals, real exchange rate increases, and declines in consumption and output.

Part D Part (C) can be thought of a sudden credit tightening. Provide economic intuition to explain the differences (if any) with what you obtained in parts (B) and (C).

Find an expression for the world interest rate as a function of endowments and β. 

Suppose now that households face borrowing constraints. How does your answer to part (a) change?

You are watching Mean Girls and Gretchen Weiners gets in trouble. Her line in the movie states that she “doesn’t think her dad, the inventor of Toaster Strudel, would be too please to know she is in trouble.” Toaster strudel is a real product, made my Pillsbury. This is an example of:

What are the characteristics of a social game?

You play a game which directs you and others to a web site, and the web site directs everyone to a concert. At this concert, a bunch of you find a USB drive with clues and images stored on it that direct you to yet another location. The game in this question is labeled as a(n) ________.

Meta is the next evolution of social connection, and its goal is to enable us to socialize, learn, collaborate and play in ways that go beyond what we can imagine, including buying virtual property and virtual clothes for our virtual worlds.