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
Owner of a haulage business is planning to invest in a new eighteen wheeler that costs $180,000, use it for 5 years and then sell it off for $90,000 dollars. At 7% interest ra
What country have you selected? Who is the target market in this country (who is the targeted consumer)? What features of your product are important to potential customers in
Choose from these topics: Emerging health care reform, managed care, total quality improvement intergrated care delivery systems e.g. alliances, network, mergers, organization
To illustrate inflation inertia in an aggregate demand–aggregate supply model, the short-run aggregate supply curve shifts upward because of increases in ______, and the aggre
Use the principles of supply and demand to address a predetermined goal (set by the student) in the gasoline market. Be clear on what the current market indicates and why an
She has no accounting background. Leonard cannot understand why market value is not used as basis for accounting measurement and reporting. Explain what basis is used and wh
Clear Water Company has a down-hole well auger that was purchased 3 years ago for $30,000. O&M costs are $13,000 per year. Alternative A is to the keep the existing auger. It
You have an insane roommate who plays “Let it Go” (from Frozen) on repeat on her phone all the time and thinks that everyone should put on pink tutus and sing very loudly and