Fixed exchange rate, Managerial Economics

Assignment Help:

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


Related Discussions:- Fixed exchange rate

Explain about concave isoquant, Q. Explain about Concave Isoquant? If t...

Q. Explain about Concave Isoquant? If the isoquant is concave to origin it would mean that marginal rate of technical substitution is increasing. This behaviour is explained in

Operate a mixed economy, Problem 1: All economies of the world can be s...

Problem 1: All economies of the world can be said to be ‘mixed', to a greater or lesser degree, in that there is no economy where there is no state activity and no economy wher

Institutional intervention theories, The institutional intervention theorie...

The institutional intervention theories Collective bargaining provides an example of what is sometimes called bi- lateral monopoly; the trade union being the monopolist suppli

Supply and demand, Discuss some of the effects of the economic downturn on ...

Discuss some of the effects of the economic downturn on supply, demand, inferior goods, complimentary goods, substitute goods, and price. words accepted#

Health Economics, Using the relationship among the price of a visit to a ph...

Using the relationship among the price of a visit to a physiotherapist and the quantity of visits demanded, explain and distinguish between the direction, the slope, and the positi

Projection method of demand forecasting, Explain trend projection method of...

Explain trend projection method of demand forecasting with illustration.

Start-up company , Let consider the economy (above) again where the followi...

Let consider the economy (above) again where the following set of stocks is traded:     x 1 =(2,2,0)    x 2 =(1,0,3)  x 3 =(0,2,4)          for the prices (p 1 , p 2 , p 3 )=(1,

Keynesian unemployment, Keynesian unemployment According to Keynesian ...

Keynesian unemployment According to Keynesian theory of income and employment, unemployment occurs due to lack of effective demand. If effective demand is less, production of

Special drawing rights, Special Drawing Rights (SDR) These are interna...

Special Drawing Rights (SDR) These are international reserve currencies created by the International Monetary Fund  (IMF) to overcome the problems of using gold and national c

Write Your Message!

Captcha
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