If in a country the tariff rates rises and at the same time the personal income tax rates in the country falls, what happens to the exchange rates? sketch a graph and explain please

Q: Consider the following: Country Jeans Corn (Pairs per hour of labor) (Bushels per hour of labor)…

A: Firms are producing goods and services which it has comparative advantage; price is set the range…

Q: Explain why a decline in a country's exchange rate will generally increase the demand for its goods…

A: Demand for goods and services by the countries results in trading. Export and imports and the main…

Q: How does the government intervene in the fixed exchange rate to keep it stable? Explain your answer…

A: Fixed exchange rate A fixed exchange rate is a type of exchange rate system in which a monetary…

Q: based on the table above, is the exchange rate of dollars to pounds fixed or flexible? Explain

A: The exchange rate between the United States dollar (USD) and the British pound (GBP) is a dynamic…

Q: What is one of the ways governments can influence exchange rates?

A: the government uses the exchange rate tool to achieve multiple objectives such as full employments,…

Q: What is the effect of changing interest rates on the exchange rate? Be explicit in your answer.

A: The exchange rate has the most direct impact on the real economy through changes in demand for…

Q: what excactly is a fixed exchange rate and give an example of a country that has a fixed exchange…

A: "The rate at which one country's money is exchanged for another country's currency is known as the…

Q: What is the price of one dollar if exchange rate is 1.5 dollar.

A: Exchange rate is a very important concept because it is the basis of modern International trade…

Q: Please explain flexible and fixed exchange rates. Show ways to maintain a strong or a weak currency

A: Flexible exchange rate A flexible exchange rate, also known as a floating exchange rate, fluctuates…

Q: Discuss why the demand and/or supply of a currency would shift, and the impact this would have on…

A: The open economy macroeconomics mainly deals with the change in the exchange rates. The change in…

Q: Describe the foreign exchange market and its components.

A: Foreign exchange market- it is a market, which is also known as forex and currency market. It is a…

Q: Discuss exchange rates and their influence on international trade and capital flows.

A: Exchange rates assume a vital part in the worldwide economic landscape, filling in as a critical…

Q: Exchange Rates Table YEAR 2014 2015 2016 US $ $1 $1 $1 Canadian $ 1.25 1.35 1.45 British Pound .85…

A: "Export occurs when goods are sold by the home country to foreign countries. Import occurs when the…

Q: What effect does a high exchange rate have on imports, exports, and that country's production?

A: The rate that measures the value of a nation’s currency in terms of another nation’s currency is…

Q: Suppose for a given country the demand for imports and exports can be expressed as shown below.…

A: Trade balance is the difference between Export and import.  This means Net Export as the Net export…

Q: Assume that Canada has a fixed exchange rate regime. Explain the effect on the foreign exchange…

A: Here, it is given that the Canada has a fixed exchange rate system to make trade in international…

Q: The table below shows the labor hours required to produce two goods in two countries. You might…

A: Given the two countries and their production of bread and wine, in order to find the range of trade,…

Q: Explain the international balance of payments (BOP) and the reason for its use.

A: Three categories of Balance of Payment: Current account: This account tracks all international…