Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Show the Changes in the exchange rate?
Assume that United States is our home country and the current euro exchange rate in direct notation is SD = 1.5 (euro/USD). In indirect notation, SI = 0.667 (USD/euro). If euro becomes more costly in terms of the USD we say that USD has depreciated against the euro (lost in value). It means that SD has increased (to say SD = 1.6) and that SI has fallen (to 0.625). If euro becomes less expensive we say that USD has appreciated against the euro. In such a case, SD will fall and SI will increase. Obviously, when USD depreciates against the euro, euro appreciates against the USD.
Remember:
A foreign currency is more expensive Û domestic currency has depreciated
A foreign currency is less expensive Û domestic currency has appreciated
Also keep in mind that whenever a currency depreciates, S will increase if we use direct notation and decrease if we use indirect notation.
If a country has a fixed exchange rate (say against a particular currency), government or central bank may change this fixed exchange rate. Suppose that Hong Kong is our home country and that Hong Kong dollar (HKD) is fixed against USD at the exchange rate 7.8 HKD/USD (direct notation). If central bank in Hong Kong changes this exchange rate to say 8.2 HKD/USD it makes foreign currency more expensive and HKD cheaper. In this case we say that HKD has beendevalued. Though, if exchange rate is changed to say 8.6 HKD/USD we say that HKD has been revalued.
Question 1: What is the equilibrium price and quantity? Question 2: How do you describe the market situation, if the market price is higher than the equilibrium price? Qu
Consider the following demand schedule. Does it apply to a perfectly competitive firm? Compute marginal and average revenue Price Quantity Price Quantity $95 2 $55 5 $88 3 $40 6 $
The Price ceiling is the law that sets a maximum price below the equilibrium market price, but a price floor is the law that sets a maximum price above the market equilibrium price
how inflation trade off is not feasible under adaptive expectation
List and briefly describe the principal causes of high population growth in developing countries and the major consequences.
If a supply curve goes through the point P = $10 and Qs = 320, then a. $10 is the highest price that will induce firms to supply 320 units b. $10 is the lowest price that wil
All other things being held constant, what is the change in the dependent variable for a unit change in the first independent variable for the multiple regression equation: ? = 5.2
explain the structure of the economy and its impact on the gdp of sountry.
what reasons limit the bargaining power of trade union in developing countries
1) Why does the adoption of Keynesian economics come out of the Great Depression? 1) Why does the adoption of Keynesian economics come out of the Great Depression? 2) What will ha
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd