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
Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2

Q. Describe the gift exchange model of reciprocity? George Akerlof (1982) develops a gift exchange model of reciprocity in that employers offer wages unrelated to variations in

what is line balancing for paper machine?

THE KEYNESIAN THEORY OF CONSUMPTION FUNCTION The theory was developed during the Great Depression which plagued Europe and America.  During this time, there was excess capacit

Question 1: (a) How do economists go about studying the economics of the public sector? Describe the four stages of analysis. (b) What are the main reasons explaining syst

Using Factor Incomes for Calculating National Income     A second method is to sum up all the incomes to individuals in the form of wages, rents, interests and profits t




what is the uses of production functns?