Proximate cause of this depreciation is actions
Course:- Business Economics
Reference No.:- EM13795681

Assignment Help
Assignment Help >> Business Economics

The euro has been depreciating against the $ for the past several months. The proximate cause of this depreciation is actions taken by the European Central Bank (ECB).

What were those actions?

Why did the ECB take those actions?

Were the actions intended to move the European AS curve or the AD curve? In what direction?

Suppose you are an American who had been planning to vacation in Italy this summer. You were planning to do this before the euro started to depreciate. Should you change your plans now? Why or why not?

From the point of view of the US, how will depreciation of the euro affect net exports (X-M), the AS curve and the AD curve?

Holding everything else constant, did the depreciation of the euro make the Federal Open Markets Committee more likely or less likely to raise the federal funds rate in the next few months? Or is it irrelevant for this decision? Explain your answer.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
The ADEA allows BFOQ to be used as a defense as long as substantially all of the individuals over the age at issue are unable to perform the duties of the job? Federal and pri
A firm’s cost function is C = 5Q + 0.1Q^2. Suppose the market price is $10. How many units will be produced by this firm to maximize its profit? Is this firm in the long run o
A US importer who owes and Belgian company 500,000 Euros payable in 30 days from today expects that the US Dollar will weaken during this period. What would you advise the imp
Illustrate what was the value of the government expenditure multiplier. Suppose that investment declined by $40 to a level of $60. What will be the new level of equilibrium in
Sort the list below according to whether or not an item is an assumption made under perfect competition (aka pure competition or competitive industry). Assumed in perfect comp
Using Microsoft® Visual Studio®, write an application to find the area and perimeter of a rectangle for the given input values of Length and Width in different measurement u
A. If Mercedes Benz realizes that its annual demand for 500SEL model is 50,000 and their cost of order preparations is $42,000.00 and the inventory carrying cost per car per y
1. Suppose the demand for sunscreen (X) has been estimated to be ln Qx = 5 - 1.7 ln Px + 3 ln S - 3 ln Ay, where S denotes the average hours of sunshine per day and Ay repre