small open economies - 2024 ACF Winter

Question

The Mundell–Fleming trilemma illustrates the trade-offs faced by idealized countries described this term. For 10 points each:

[10h] Give this three-word term that describes certain countries, depending on their total output and level of trade, whose interest rates are determined entirely by international capital markets.

ANSWER: small open economies [or SOE, reject partial answers]

[10e] Policymakers within small open economies may intentionally lower this value to increase exports in a policy known as depreciation. This value is the proportion at which one currency can be converted into another.

ANSWER: exchange rate

[10m] Because small open economies are price-takers of interest rates, their assets face this sort of demand. This demand curve is represented by a horizontal line on a supply-and-demand graph.

ANSWER: perfectly elastic demand [or infinitely elastic demand; prompt on elastic demand]

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Summary


2024 ACF Winter at Clemson	2024-11-16	Y	1	20.00	100%	100%	0%
2024 ACF Winter at Lehigh	2024-11-16	Y	6	15.00	100%	50%	0%
2024 ACF Winter at Northwestern	2024-11-16	Y	9	14.44	100%	44%	0%
2024 ACF Winter at Ohio State	2024-11-16	Y	7	11.43	100%	14%	0%
2024 ACF Winter at Online	2024-11-16	Y	8	10.00	88%	13%	0%
2024 ACF Winter at UBC	2024-11-16	Y	3	13.33	100%	33%	0%
2024 ACF Winter at Central Florida	2024-11-16	Y	5	12.00	100%	20%	0%
2024 ACF Winter at Brandeis	2024-11-16	Y	8	15.00	100%	50%	0%

Data


Georgia Tech B	Auburn A	10	10	20
NYU B	Central Oklahoma	10	0	10
Oregon State	Mississippi State	10	0	10
Missouri	NYU A	10	0	10
Texas A	Iowa	10	0	10
Texas D	Colorado College	0	0	0
Texas B	Vassar A	10	0	10
Amherst A	Boston University B	10	10	20
Boston University A	Clark A	10	0	10
Yale B	Bowdoin B	10	10	20
Brown A	Tufts A	10	0	10
Indiana A	UChicago A	10	0	10
UIUC C	Miami	10	0	10
Purdue A	Northwestern A	10	10	20
WashU C	Notre Dame	10	10	20
Purdue B	UChicago D	10	10	20
SIUE A	Indiana B	10	0	10
UIUC B	UIUC A	10	0	10
UChicago C	UIUC D	10	10	20
UChicago B	WashU D	10	0	10
Pitt B (UG)	CWRU B (UG)	10	0	10
Kenyon A (UG)	Kenyon B (DII)	10	0	10
Michigan A	Pitt A	10	10	20
Michigan State A	Michigan B	10	0	10
Ohio State C (DII)	Michigan C (UG)	10	0	10
Michigan State C (UG)	CWRU D (DII)	10	0	10
Ohio State A (UG)	Ohio State B (DII)	10	0	10
Texas C	Vassar B	10	0	10
WUSTL A	McGill E	10	10	20
Diamond Brandeis	Bowdoin A	10	10	20
Tufts B	Harvard A	10	10	20
MIT A	Brandeises Brew	10	0	10
Yale A	Northeastern A	10	0	10
Penn A	Bard A	10	10	20
Columbia A	Haverford A	10	10	20
Columbia B	Lehigh A	10	0	10
Penn State A	Princeton A	10	0	10
Rowan A	Rutgers A	10	0	10
Johns Hopkins B	Rutgers C	10	10	20
Alberta	SFU	10	0	10
UBC B	UBC A	10	10	20
UW B	UW A	10	0	10
Florida State University A	UF A	10	10	20
UCF B	UF C	10	0	10
UCF A	UF D	10	0	10
Florida Tech B	UF E	10	0	10
Florida Tech A	UF F	10	0	10