Use the DD-AA model to examine the effects of a one-time rise in the foreign price level, P*. If the expected future exchange rate rises immediately in proportion to P* (in line with PPP), show that the exchange rate will also appreciate immediately in proportion to the rise in P*. If the economy is initially in internal and external balance, will its position be disturbed by such a rise in P*?

option 2 is correct.

step-by-step explanation:

we are given two inequality equation

x+y> 5 and -3x+2y< -2

first we draw the graph of both function using t-table method

equation: x+y> 5

for x=0, y=5

for x=-5, y=0

table:

x   :   0     5

y   :   5     0

test point (0,0) , 0> 5

false

equation: -3x+2y< -2

for x=0, y=-1

for x=2, y=4

table:

x   :   0     2

y   : -1       4

test point (0,0) , 0< -2

true

now we draw the graph. see the attachment for graph.

common region would be solution set.

option 2 is correct.

7.25

step-by-step explanation:

we know that 7 equals to 7.0. we also know that 1/4=0.25. so we can add the two together and we get 7.25

he is going to fill two shelves and the third shelf will only have five video games