Influences affecting foreign exchange rates

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Reference no: EM1315296

Q1. Assume which survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, illustrate what will happen to aggregate demand? Illustrate what should the Fed do if it wants to stabilize aggregate demand? If the Fed does nothing, illustrate what might Congress do to stabilize aggregate demand?

Q2. • List at least one advantage also one limitation of international trade you encountered in the simulation.

• Define absolute also comparative advantage in your own words.

• Elucidate how absolute also comparative advantages were used in your simulation.

• Elucidate the influences affecting foreign exchange rates.

Reference no: EM1315296

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