User Account

All Pages

Has the uno appreciated or depreciated

Assignment Help Business Economics
Reference no: EM131244221

Use the following information for yet another fictional country, Country 1, plus any additional information I provide you, to do this problem:

–Country 1's domestic currency unit is the Uno: (U)

--Country 1's Real Exchange Rate is currently equal to 12

--Country 1's Price Level is currently equal to 200

–The Price Level in the ROW is currently equal to 125

A. How many Uno’s does it currently take to purchase 1 unit of FX in Country 1's FX market?

*Information: Suppose that the following three events take place:

< Country 1's Nominal Exchange Rate becomes 20

< The ROW Price Level rises to 130

< Country 1's Price Level rises to 260

B. Has the Uno appreciated or depreciated?

C. Has Country 1 experienced inflation or deflation?

D. What is the new value of Country 1's real exchange rate (R)? Show your calculations to obtain full credit.

E. As a result of this change in Country 1's real exchange rate, Country 1's

1. Exports (X) of goods & services will (choose one) RISE/ FALL / STAY THE SAME

2. Imports (M) of goods & services will (choose one) RISE/ FALL / STAY THE SAME

3. Net Exports of goods & services (X-M) will (choose one) RISE / FALL / STAY THE SAME

4. Current Account (CA) will (choose one) RISE / FALL / STAY THE SAME

Reference no: EM131244221

Questions Cloud

What would be the value of domestic spending : In the island nation of Isolandia the GDP in period 1 is recorded as $1,600 billion. The nation runs a current account deficit of $200 billion in this period, due to which it borrows money at a market rate of interest of 4 percent. Compute the value ..
The nominal interest rate increased : If the CPI increased from 215 to 218 between 2012 and 2013, while the nominal interest rate increased from 3.25% to 3.80%. A. What is the inflation rate between 2012 and 2013? B. what is the real interest rate in 2013?
The economic theory of supply side economics : What are some significant principles involved in the economic theory of Supply Side Economics (Please include things like the effect of tax on business decisions). Are there other views on what Supply Side Economics or is there only one?
Calculate the value of country twos current account : Consider the following information for Country 2: GDP = 1600; Absorption = 1500; Unemployment Rate = 4%; Net UT = (-)150. Calculate the value of Country 2's Current Account (CA). Show all your calculations to obtain full credit. Country 2 is likely t..
Has the uno appreciated or depreciated : How many Uno’s does it currently take to purchase 1 unit of FX in Country 1's FX market? Has the Uno appreciated or depreciated? What is the new value of Country 1's real exchange rate (R)? Show your calculations to obtain full credit.
Current level of net exports of goods and services : Consider the following information for a different country: East Caledonia. In a position of External Balance? Calculate East Caledonia’s current level of Net Unilateral Transfers (net UT). Calculate East Caledonia’s current level of Net Exports of g..
General form of budget constraint : I am given utility function. U=10XY^2. general form of budget constraint? marginal utilities given the total utility curve. that is, derive MUx and MUy.
Allocational problem and distributional problem : Distinguish between the allocational problem and the distributional problem faced by the agents in the Fisher’s Dilemma discussed in class. Specifically, if Alfredo suggested that he fish for 8 hours and that Bianca fish for only 6 in exchange for pa..
Define what a public good is and give an example : Define what a public good is and give an example. Make sure to mention and explain the two key characteristics of a public good that make it different from a private good. (Hint: The beginning pages of chapter 36 in Varian are helpful for this questi..

Reviews

Write a Review

Business Economics Questions & Answers

  Would question of constitutionality of statute be evaluated

Would the question of constitutionality of this statute be evaluated under a rational basis, intermediate scrutiny or strict scrutiny test? Why? Using that test, do you believe this law is constitutional? Why or why not?

  As a currency appreciates

As a currency appreciates:

  Describe the uses of elasticity of demand

Using appropriate diagrams and notations, carefully explain the relationship between elasticity, total revenue and marginal revenue. Describe the uses of elasticity of demand.

  Needs-tested spending and induced taxes

In a recession, needs-tested spending and induced taxes

  What is the simple payback period for each alternative

Consider the following two mutually exclusive alternatives for reclaiming a deterioring inner-city neighborhood (one of them must be chosen). Notice that the IRR for both alternatives is 27.18%. If the MARR is 27.4% per year, Which alternative is bet..

  How does an easement appurtenant differ from an easement in

The Sarbanes-Oxley Act provides for the establishment of the _____________ to over see audits of public companies. This will be done to protect the interests of shareholders and investors.

  Explain the events using supply and demand

Explain the events below using supply and demand. At a restaurant that does not take reservations, people arriving at 7:30 normally have to wait for an hour, but some people arriving at that time give money to the hostess and are promptly seated.

  Sufficiently to transform the frustrating situation

Before 1976, the airlines often denied boarding to passengers who were flying on urgent business in favour of passengers who were not in any particular hurry to reach their destinations. This would seem to be a cooperative failure.

  Find the market-clearing wage and employment level

Consider a labor market where the demand for a particular category of labor is given by the equation LD = 20 – 2W. Suppose that the supply curve of workers in this market who are also native-born citizens is given by LN = 2W, while the supply curve o..

  Difference between e-commerce

Choose what you consider the most significant difference between B2B E-Commerce and B2C E-Commerce: Explain the difference using an example, and why you think it is the most significant.

  Financial reimbursement cycle-economies of scale

Which of the following tools has not yet been used to constrain growth in hospital costs? Economies of scale. Payments to hospitals from private insurers can be characterized as having reached which stage of a typical financial reimbursement cycle?  ..

  Describe the current conditions in the money market

The following data describe the current conditions in the Money Market. Amount of Money Supplied $100 billion $200 billion $300 billion $400 billion $500 billion $600 billion $700 billion. What happens in this economy if the Amount of Money Supplied ..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd