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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.
#question.suppose that France has a trade surplus with the United Kingdom. What would you expect to happen to price, wages, and commodity price in France? why? What would happen to
Q. What will be the effects of an increase in the money supply on the interest rate? Answer: An enhance in the money supply will origins the interest rate to decrease. This m
Difference between net barter terms of trade and gross barter terms of trade
Explain Ohlin theory of International trade
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 and th
Q. Explain why after, say Norway unilaterally pegs the krone to the euro, domestic money market disturbances will no longer affect domestic output despite the continuation of float
Q. Using a figure describing both the U.S. money market and the foreign exchange market, analyze the effects of a temporary increase in the European money supply on the dollar/euro
Q. "It is in the interest of each depositor to withdraw her money from a bank if all other depositors are doing the same, even when the bank's assets are sound." Discuss. As par
Q. Using figures for both the short run and the long run, show the effects of a permanent increase in the U.S. money supply. Try to line up your figures to the short and long run
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?
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