4. Using the Mundell-Fleming model to analyze how protectionism would affect Taiwan’s output, net export, and the exchange rate in the short run and long run.

2. Someone claims to have found a long-lost work by Jane Austen. She asks you to decide whetheror not the book was actually written by Austen. You buy a copy of Sense and Sensibility and count thefrequencies of certain common words on some randomly selected pages. You do the same thing for the‘long-lost work’. You get the following table of counts.Using this data, set up and evaluate a significance test of the claim that the long-lost book is by Jane Austen. Use a significance level of 0.1.

4. Using the Mundell-Fleming model to analyze how protectionism would affect Taiwan’s output, net export, and the exchange rate in the short run and long run.

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