Explain why the exchange rate model, International Economics

Assignment Help:

Q. Explain why the exchange rate model based on PPP is a long-run theory.

Answer: PPP theory is a financial approach to the exchange rate. It is a long-run theory for the reason that it doesn't allow for price rigidities. It assumes that prices are able to adjust right away to maintain full employment as well as PPP.


Related Discussions:- Explain why the exchange rate model

Absolute advantage by adam smith, which book by adam smith explains the abs...

which book by adam smith explains the absolute advantage ?

Free trade, how to determine free trade for small country

how to determine free trade for small country

International trade, What does the factor proportions theory posits

What does the factor proportions theory posits

Gross barter terms of trade, tion..What is the range of gross barter terms ...

tion..What is the range of gross barter terms of trade ?

Resarch paper, i need to do term paper international economics related. the...

i need to do term paper international economics related. the paper have to be empirical paper. Writing an Empirical Paper in APA Style 1- Title Page 2- Abstract 3- Introduction 4-

International trade, #question.what is the baises for international trade.

#question.what is the baises for international trade.

Trade theory, what you do understand by the term effective rate of protecti...

what you do understand by the term effective rate of protection

Why do we observe the leontief paradox, Q. Why do we observe the Leontief ...

Q. Why do we observe the Leontief paradox? Answer: There are several possible answers that they may be categorized into three groups. One would argue that the theory or model

Firms compete only through diversifying their prices, It is often argued th...

It is often argued that firms compete only through diversifying their prices. Do you agree with this view? Justify your answer using examples / case studies form the Greek and/or t

Write Your Message!

Captcha
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