Fixed exchange rate, Managerial Economics

Country A has a fixed exchange rate with country B. Due to a recession in country B, demand for A's goods falls. Draw what would happen on the graph below. On the graphs, draw what country A's central bank must do to keep the fixed exchange rate. Answer the following:

What will happen to A's output?

What will happen to the price level in country A?

1877_exchange rate1.png

Posted Date: 3/13/2013 6:39:41 AM | Location : United States







Related Discussions:- Fixed exchange rate, Assignment Help, Ask Question on Fixed exchange rate, Get Answer, Expert's Help, Fixed exchange rate Discussions

Write discussion on Fixed exchange rate
Your posts are moderated
Related Questions
What are the Methods of Managerial Economics The process of managerial economics deals with aspects of economics and tools of analysis, which are employed by business enterpri

Apprehensions about the future price of law of demand When consumers anticipate a constant rise in the price of a long-lasting commodity, they buy more of it despite the price

Shifts in demand curve Shifts in the demand curve are brought about by the changes in factors like taste, prices of other related commodities, income etc other than the price

Using the CPS data, set the sample to women only and regress lnwage on education & MARRIED (which is 1 if married and 0 if not) and 1-MARRIED. Give a 95 percent confidence interval

Can identity economics explain some patterns observed in the Australian economy

A firm is employing 100 hours of labor and 50 tons of cement to produce 500 blocks. Labor costs Rs 4 per hour and cement costs Rs 12 per ton. For the quantities employed MPL = 3 an

why firms under oligopoly market should follow price rigidity?

Problem 1: Using relevant examples, discuss the pricing strategies that firms can use to capture value from their customers. Problem 2: You are a manager in a perfectl

Consider a manufactured good whose production process generates pollution. The annual demand for the good is given by Qd=100-3P. The annual market supply is given by Qs=P. In both

Explain in brief the relationship between TR,AR and MR under perfect market condition.