How can long-run values in the real exchange rate change, International Economics

Assignment Help:

Q. How can long-run values in the real exchange rate change?

Answer: A elevate in world relative demand for U.S output origins a long-run real appreciation of the dollar against the euro a fall in the real dollar/euro exchange rate.

A proportional expansion of U.S output causes a long-run real depreciation of the dollar against the euro (a rise in the real dollar/euro exchange rate).


Related Discussions:- How can long-run values in the real exchange rate change

Internal economic environment, In the International Medical Center there ar...

In the International Medical Center there are internal influences. The strategic capability of the project consists of competencies and resources. The strengths and weaknesses of p

International monetary system during the post-world war, Q. How did the int...

Q. How did the international monetary system influence macroeconomic policy-making and performance during the post-World War II years during which exchange rates were fixed under t

Complete equalization of factor prices, Q. International trade leads to co...

Q. International trade leads to complete equalization of factor prices. Discuss. Answer : This statement is usually "true...but". Under a limited and strict set of assumpti

Significance of macroeconomic policy coordination, Q . Use the following ta...

Q . Use the following table to demonstrate the significance of macroeconomic policy coordination. Demonstrate that the two governments would have been happier if the two of them h

Opportunity cost thoery, what are the criticisms of OPPORTUNITY COST THEORY...

what are the criticisms of OPPORTUNITY COST THEORY of international trade propounded by PROF.HABERLER and OHLIN

Determine the amount of money an individual desires to hold, Q. What are th...

Q. What are the factors that determine the amount of money an individual desires to hold? Answer: Three major factors that are first one the expected return the asset offers co

Consumers and businesses, if the US dollar depreciates dramatically relativ...

if the US dollar depreciates dramatically relative to the Chinese yuan, what effect would this have on consumers and businesses in each country? When is a falling dollar good or ba

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

what you do understand by the term effective rate of protection

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