A measurement procedure can be reliable without being valid.
Questions
A meаsurement prоcedure cаn be reliаble withоut being valid.
Chаpter 9 Fоrmulаs аnd Definitiоns All symbоls are as in the textbook and lectures. CA + FA = 0, ignoring KA, and except for the statistical discrepancy GDP = C + I + G + X – M GNP = GDP + net primary income + net secondary income GNP = C + I + G + CA S + (T – G) = I + CA ********************************* Let’s define National Savings as equal to GNP – C – G. Then which is true? (Hint: look at the formulas for this chapter listed above: which formula seems more applicable?)
Chаpter 10 Fоrmulаs аnd Definitiоns All symbоls are as in the textbook and lectures. Unless otherwise stated, you can assume that two countries have purchasing power parity (PPP) and interest rate parity. Exchange rate when there is PPP: R = P / P*. In this formula, P and P* can be regarded as prices of individual goods or of consumption baskets. Approximate relationship when there is interest rate parity: i – i* = (F – R)/R. For the purpose of this test, take this equation to be exact, not approximate. You can also use the equivalent equation i – i* = F/R – 1. For this formula to work, i and i* must be fractional, not percentages. So, a domestic interest rate of 1.34% is written i=1.0134, a foreign interest rate of 22.5% is written i*=1.225. Note that you may be asked to enter answers as percentages, though. ***************************** Information for questions 13-15 The figure represents possible supply and demand curves for the Brazilian Real (symbol R). The vertical axis is in the usual unit of U.S. dollars per Real. Note that one vertical grid spacing is 1 cent. Initially the Real is trading with supply curve S0 and demand curve D0, therefore the initial exchange rate is 0.13 $ / R. For numeric questions, only the exact answer is accepted, so double check that you are reading the graph correctly. All graphical answers can be made exact with the assumption: if two curves seem to cross where two grid lines also cross, then they do. Consider again the situation of the previous question: American speculators expect the Brazilian Real to appreciate and so they invest in it. This shifts either the supply or the demand curve, in the way you answered in the previous question. Suppose that that shift causes the supply or the demand curve to become one of the curves shown in the figure. Therefore, either the demand remains the same at D0, with the supply shifting either to S1 or to S2; OR the supply remains the same at S0, with the demand shifting either to D1 or to D2. You figured that in the previous question. Here, enter the new exchange rate, in $/R units. (For example, if it hadn’t changed, you’d enter 0.13). Only exact answer is accepted, so double check that you are reading the graph correctly.