Macroeconomic variables, Macroeconomics

Furthermore it can be seen that there are interesting relationships between the remaining variables. Firstly, at the 95% significance level it can be seen that interest rates Granger cause exchange rates. This complies with the relevant theory as if domestic interest rates rise there will be a subsequent increase demand for domestic currency. The relationship between inflation and interest rates is also shown in Table 4.3, with both variables Granger causing each other.

In summary, this section has found that oil prices Granger causethree key macroeconomic variables, interest rates, inflation and GDP, therefore we are able to deduce that any unit change in the price of Brent oil, will subsequently impact on these three macroeconomic variables.

Posted Date: 4/13/2013 5:40:44 AM | Location : United States

Related Discussions:- Macroeconomic variables, Assignment Help, Ask Question on Macroeconomic variables, Get Answer, Expert's Help, Macroeconomic variables Discussions

Write discussion on Macroeconomic variables
Your posts are moderated
Related Questions
Several species of Alternaria (A. citri, A. alternata, A. solani and A. tenuissima) produce toxic substances that have been found in apples, tomatoes, blueberries and others. The

The manager of the world famous Koala Caves offers a tour each afternoon starting at 3pm. The caves can be shown to only four people per day without undermining their ecology. Occa

Given the demand and cost data you will have available (see information below), briefly describe the process you would use to determine optimum output and price levels in the devel

Consumer Prices Index Two economic indices learnt at AS are the Consumer Prices Index (CPI) and the Retail Prices Index (RPI). Both are used to calculate the average price lev

Explain the facts or economics rate Boom: The period leading up to the peak of the cycle when an overheating economy is experiencing high GDP growth and inflationary pressures

given the consumer maximizing problem subjest to consumption, the firm''s maximizing problem subject to revenue as a function of labour demand, and the government''s budget as G=T.

An HMO has a point of service option for its members, but will pay only 80 percent of approved charges. If a member goes out of network for a medical procedure with a charge of $20

1 . Use the AS/AD model to a . Demonstrate graphically and explain verbally the situation the US economy is currently in. b. In the diagram you drew for part (a) above, sh

You should now find a press release from the Board of Governors of the Federal Reserve System, dated December 16, 2009, which discusses the decisions of the Federal Open Market Com

it has been argued that economic development of developing countries has been held back by a persistent fall in the terms of trade of developing countries over the long run