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Q. Based on the case study, answer the following question: Can currency boards make fixed exchange rates credible?
Answer: No for the reason that is prohibited by law from acquiring any domestic assets thus all the currency it issues automatically is fully backed by foreign reserves. as well countries that adopt currency board do it for the reason that one of the mayor advantage aside from the constrain it places on fiscal policy central bank is able to never run out of foreign exchange reserves in the face of a speculative attack on the exchange rate. Thus the currency board cannot fix exchange rates.
What are the predictions for the long run of the Monetary Approach? Answer: Money supplies- Known the equations
I am trying to complete this homework assignment and I need to use an example to describe and explain the classical theory of international trade, could you guys help me out?
Using 4 different figures, plot the time paths showing the effects of a permanent increase in the United States money supply on: A. U.S. money supply. B.
why do nations impose trade barriers
Q. To answer the following question, please refer to the figure below. Concentrating only at the lower left quadrant, discuss the relationship between the U.S. real money supply a
Q. Imagine a world with two large countries, Home and Foreign. Evaluate how Home's macroeconomic policies affect Foreign. Compare the small and the large country cases; consider
Question : (a) What are the rationales for interest and currency swaps? (b) Suppose a Swiss firm, SandyCom Ltd, wants to invest in the U.S. The Swiss firm needs US dollars
different between her barter terms of trade and net barter terms of trade
Q. What are the three main reasons why governments sometimes chose to devalue their currencies? Answer: 1. Permit the government to fight domestic unemployment despite the
Q . Consider that the relative capital abundance of Australia was so much greater than that of Sri-Lanka, that we would have to locate Australia far to the right on the K/L axis.
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