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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.
Q. Present the case against floating exchange rates. Answer: 1.The discipline obligatory on individual countries by a fixed rate would be lost. 2. Undermine specu
in a mixed economy, the government tries to help meet the needs of the public on a limited basis
Q. Use the II - XX framework in order to show graphically how inflation can be imported from abroad unless exchange rates are adjusted. Answer: Suppose that the home economy is
A good analysis in increasing cost theory with graphical analysis
Q. Using the diagram, show what happens to the composition of production (that is quantity of cloth per 1 unit of food) in Australia once trade is established between the two coun
Are tariffs harmful are necessary to maintain fair trade?
Assume the United States exports 1000 computers at a price of $3000 each and imports 15 UK autos at a price of 10000 pounds each. Assume that the dollar/pound exchange rate is $2 p
International Relations (IR) Goal : The goal of this writing assignment is for you to hone your skills in identifying accuracy or bias in movies or in "alternative" documentar
Q. Several argue that tariffs always hurt the imposing country's economic welfare, and are typically designed to shift resources from one part to another, protected or preferred o
een subject to a discrimination complaint as a result of their recent recruitment campaign- They told the recruitment agency that they were looking for ‘young women with flair'' to
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