By which the bank of canada would need to reduce the supply

Assignment Help International Economics
Reference no: EM13198943

Suppose the Bank of Canada contracts the money supply in an effort to reduce aggregate demand by a particular amount, say $10 billion. If Canada was a closed economy, would the amount by which the Bank of Canada would need to reduce the supply of money to accomplish this goal be greater or smaller than the amount it would need to reduce the supply of money if Canada was an open economy with a flexible exchange rate?

Reference no: EM13198943

Questions Cloud

State good credit score is vital to one''s financial security : Most consumers understand that a good credit score is vital to one's financial security and stability. Many people may not understand how a credit score is calculated.
What is the probability that the other side of the card : One card is selected from the box at random, and the color on one side is observed. If this side is green, what is the probability that the other side of the card is also green?
Find the probability of receiving a phone call : Find the probability of receiving a phone call during a long drive between 9:00 a.m. and 8:00 p.m. You may assume phone calls are equally likely at any time of the day.
What is the natural length l of the spring : If 7 J of work are needed to stretch a spring from 12 cm to 15 cm and 13 J are needed to stretch it from 15 cm to 18 cm, what is the natural length L of the spring?
By which the bank of canada would need to reduce the supply : If Canada was a closed economy, would the amount by which the Bank of Canada would need to reduce the supply of money to accomplish this goal be greater or smaller than the amount it would need to reduce the supply of money.
What is the length of the sides of the square of the sheet : An open box is to be made from a square piece of sheet metal by removing a square of side 3 inches from each corner and turning up the edges. If the volume of the box is to be 1728 cubic inches, what is the length of the sides of the square of the..
What are the lengths of the sides of each square : A 104 inch long piece of wire is cut into two pieces, and two squares are formed. The sum of the areas of the two squares is 388 square inches. If the sides of the squares have integer lengths, what are the lengths of the sides of each square?
How many of each did electric depot sell : Electric Depot sells boxes of high efficiency light bulbs ($6 box) and switch plates ($12 each). In May, total sales were $42,000. Customers bought 5 times as many boxes of light bulbs as switch plates. How many of each did Electric Depot sell.
Why would it be counterproductive for the bank : a. Why would it be counterproductive for the Bank of Canada to fix the value of the exchange rate b. What is the effect of this policy on the interest rate in the long run How do you know

Reviews

Write a Review

International Economics Questions & Answers

  Why international trade economists find invalid the argument

For example, if the U.S. sold cars in Japan in addition to Japanese cars being imported into the U.S., that would be cross-hauling. Trade statistics show that many commodities are cross-hauled.

  Describe absolute and comparative advantage

Suppose that with a given unit of labour, India can manufacture 40 basketball hoops or 60 basketballs and Nepal can manufacture 10 basketball hoops or 30 basketballs.

  Question related to international trade policy

Assume that a nation declares that it is moving toward free trade through decreasing its tariffs on intermediate inputs while maintaining its tariffs on final goods.

  List the costs of high inflation

In the early 1930s there were a number of bank failures in U.S. What did this do to money supply? The New York Federal Reserve Bank advocated open market buys and list the costs of high inflation.

  Determine which would be the most effective at addressing

Review the impact of the minimum wage on the natural rate of unemployment and make at least one recommendation for change (big or small) that would mitigate the impact while still helping the working poor.

  Explain the meaning of efficient markets

Describe the meaning of efficient markets. Why might we expect markets to be efficient most of the time?

  Prepare a vertical analysis

Comparative statement information for Douglas Corporation and Maulder Corporation, two competitors, appear below. All balance sheet data are as of December 31, 2009, and December 31, 2008.

  How productivity and income affect exchange rates

Discuss and explain the difference between comparative advantage and absolute advantage. Also, provide some specific example so I can understand the difference.

  Market failures situations

Company A manufacture cement sifters. The process includes melting of metals and chemicals which give sifters strength. In the manufacturing process, waste is produced and released into river that runs alongside of the plant.

  Difference between the population policies of china nd india

India`s population is expected to overtake that of China within the next decade, what differences between these two nations could have contributed to this outcome? What are some of differences between the population policies of China and India?

  Calculate the cash conversion cycle and operating cycle

A Company issues $1,000,000 of commercial paper with a maturity of 60 days and a discount rate of 5%. The paper is sold through a dealer who charges 0.25 percent.

  Nominal tariff schedule

If offshore assembly provisions were extended to include more goods and services, what would this do to the actual level of protection provided by a nation's nominal tariff schedule? Describe your reasoning.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd