The exchange rate-does the dollar appreciate or depreciate

Assignment Help Business Economics
Reference no: EM131194451

Consider an open economy in which prices, interest rates and the exchange rates all vary. Explain briefly the effect expansionary fiscal policy would have on…

a) The exchange rate. Does the dollar appreciate or depreciate?

b) The trade balance. Improve or worsen?

c) The price level. Rise or fall?

d) The interest rate. Rise or fall?

Reference no: EM131194451

Questions Cloud

Suppose the currency-to-deposit ratio : Suppose the currency-to-deposit ratio is 0.25, the excess reserve-to-deposit ratio is 0.05, and the required reserve ratio is 0.10. Which will have a larger impact on the money multiplier: a rise of 0.05 in the currency ratio or in the excess reserve..
What would be the potential leadership problems : What would be the potential leadership problems a Chinese manager at Lenovo might encounter as he or she moves into a senior management position at the firm’s new New York offices, where he or she will work with former IBM employees?
Budgeted town expenditures : Budgeted town expenditures: $15,000,000.00 Estimated non-property tax revenues: $11,000,000.00 Appraised value of property: $200,000,000.00 Total exemptions for the elderly: $8,000,000.00 Assessment ratio: 60%. The Johnson family has property with an..
How much are aggregate expenditures as function of output : Assume interest rates are fixed and the economy is closed (no trade with other countries). This economy is different from the basic economic model considered in class because government expenditures are determined differently. How much are Aggregate ..
The exchange rate-does the dollar appreciate or depreciate : Consider an open economy in which prices, interest rates and the exchange rates all vary. Explain briefly the effect expansionary fiscal policy would have on… The exchange rate. Does the dollar appreciate or depreciate? The trade balance. Improve or ..
What is balance of trade at equilibrium-surplus or deficit : Consider the following aggregate economy Note that taxes and imports rise with income. Assume that interest rates, exchange rates and prices are fixed. Calculate the equilibrium output in this economy. What is the balance of trade at equilibrium? Sur..
Describe in three well-structured paragraphs fisher effect : Although not explicitly mentioned in Chapter 26, Irving Fisher is considered a foundational source in the understanding of the economic field of monetarism. After performing research outside the textbook, please define and describe in three well-stru..
Drawback of nationalized health care or? single-payer system : Which of the following is not a potential drawback of nationalized health care or? single-payer systems relative to privately delivered and financed health? care?
What effects might be felt in other markets and why : The news that oats can help reduce cholesterol has caused people to prefer to eat more oats. This change in preference would be expected to cause the demand curve for oats to shift to the right, and equilibrium price and quantity of oats to increase...

Reviews

Write a Review

Business Economics Questions & Answers

  When supply shifts cause downturn in the economy

When supply shifts cause a downturn in the economy:

  Evaluating the rate of return for the new equipment

Converse Elucidate how you might go about evaluating the rate of return for the new equipment.

  Firms with monopoly power-creation of monopolies

What are some of the situations that can give rise to monopolies? Research the industrial revolution and the Robber Barons (such as Carnegie and Rockefeller), of that era and comment on how they were able to create their monopolies. How are we able t..

  Explain what is an infant industry

explain a diagram for an industry in a developing country where infant industry protection might be a good idea. What are arguments for and against governments in developing countries giving infant industry protection to new industries.

  Consider market where supply and demand

Consider a market where supply and demand are given by QXS = -16 + PX and QXd = 83 - 2PX. Suppose the government imposes a price floor of $36, and agrees to purchase any and all units consumers do not buy at the floor price of $36 per unit

  Determine the capitalized cost

Determine the capitalized cost of $1,000,000 at time 0, $125,000 in years 1 through 10, and $200,000 per year from year 11 on. Use an interest rate of 10% per year. Show the standard notation, interest factor formula and solution

  Half of the monopolist profit-maximizing output

Assume there are only two producers of tennis rackets: Wilson and Prince. The market demand for tennis rackets is depicted by the algebraic formula P = 100 - Q, where P stands for price and Q stands for quantity of rackets. If Wilson and Prince form ..

  What is the equivalent uniform annual cost over the entire

Maintenance costs for a small bridge with an expected 50-year life are estimated to be $1,000 each year for the first five years, followed by a $10,000 expenditure in year 15 and a $10,000 expenditure in the year 30. If I = 10% per year, what is the ..

  Organization manages its inventory

For this SLP take a look at how your organization manages its inventory and then answer the following questions.

  Using human capital theory elucidate what these dangers are

Using human capital theory elucidate what these dangers are. While there may be good reasons for heavily subsidizing university education, there are also some dangers in it.

  Do you think that a manager job is universal

Do you think that a manager's job is universal? In other words, is the concept of management the same in any organization (withstanding the obvious differences in responsibilities and duties)? If possible give examples that support your point from an..

  Qassume the production function of the company isq 7v -

q.assume the production function of the company isq 7v - 0.5v2where q is the production and v is the number of

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