It's a question similar to one from an assignment, yes. So I can't post the full question. 
But the extract I posted is the only information given in relation to the distribution of X|Y. It clearly states that the parameter of the exponential distribution X|Y is y, but then mentions α>0 at the end and α is not mentioned anywhere else in the question. Unless the α is a typo? Though that's probably unlikely.
If the parameter of the exponential distribution is

and the pdf is is conditional on the random variable

, then this suggests to me that

is most likely a parameter for the distribution of

, but you mention

is not used anywhere else in the question, then one can only conclude that it is irrelevant here.
Actually the pdf would be y*e^(-xy) right? And E[X|Y=y] = 1/y?
So if I I were to find E[X], how would I evaluate E[1/y]? If I knew the distribution of 1/Y, would E[1/y] = E[1/Y]? Thanks in advance.
The pdf is correct and the conditional expectation is correct. The rest of your statements don't make sense.

, which is deterministic, however note that

is a random variable and if you were trying to compute the expectation of this, then note that

and you are done.
If you knew the distribution of

, then you can easily compute the distribution of

using transforms, which then you can easily compute the mean (either through MGFs, PGFs, or just by the definition itself)