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1. Explain what is a J Curve? Why is it useful?2. What do you meant by AA-curve? Why does it have a negative slope? What factors cause it to shift?3. Please describe and give an example of sterilized foreign exchange intervention.4. Please discuss the difference between the terms devaluation and depreciation.5. What is the difference between an expenditure-changing policy and an expenditure-switching policy?6. Explain why under the gold standard a perpetual surplus or a perpetual deficit is impossible.7. Present the case against floating exchange rates.8. How would you analyze the use of monetary and fiscal policy to maintain internal and external balance under floating exchange rates?
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