In Myanmar to fix the exchange rate at 1 US$ = 5 Kyat, the government has imposed law stated that for people who buy and sell US dollars at any exchange rate that is different from this rate will be imprisoned in jail for 10 years. However, 3 months later, after the failure of the implementation, the government revoked and gave up the law and let the exchange rate floated at market rate of 1 US$ = 1,320 Kyat. Using the concept about "US dollar reserves at Myanmar central bank" and "US dollar black market", explain the reasons leading to failure of this law!

Q: 11. Suppose that apples were the only good produced in the United States and Mexico. In Mexico,…

A: (a). According to purchasing power parityE=PP*,where E is nominal exchange rateP is the price of…

Q: In the last 4 years, the exchange rate Pound to Euro depreciated (decreased) to an average of 1.13…

A: Exchange rate refers to the currency of one country in terms of another currency of another country.…

Q: Currency Values in 2015 and 2016 Country Currency Percentage 2015 2016 0.82710.6892 0.06830.0538…

A: Currency depreciation is a fall in the value of a currency in a floating exchange rate system.

Q: 1. The nominal exchange rate for 1$USD is 6.87CNY, a cheeseburger in the US is $1.60USD, and 11CNY…

A: The Real exchange rate (RER) of two currencies is the result of multiplying the nominal exchange…

Q: 12. Use the Foreign Exchange market for British pounds to answer the following. Suppose that the…

A: Exchange rate refers to the rate at which the currency of one nation can be exchanged with the…

Q: Suppose that the US interest rate is 5.4% per annum and the interest rate in Japan is 2.8% per…

A: The forward rate is the expected future price for a currency. It is can be lower or greater than the…

Q: 3. The nominal exchange rate is e=48 peso per USD. The price of a Big Mac is P=$3 in the U.S., and…

A: The (NEER) stands for nominal effective exchange rate and signifies an unchanged weighted average…

Q: Calculating Exchange Rates Assignment Directions: Use the information in Table 1 to answer questions…

A: An exchange rate is the value of a country's currency in respect to that of another country.

Q: K ces Consider the data in the table below: Nominal Exchange Rates for the U.S. Dollar yen Foreign…

A: The exchange rate means the value of one currency in terms of another currency. It is calculated by…

Q: On June 23, 2016, citizens of the United Kingdom voted in favor of a referendum to leave the…

A: The exchange rate in economics refers to the price of one country's currency in terms of another…

Q: If the real exchange rate between Turkish lira and U.S. dollar is 3.50, the price level in Turkey is…

A: Real exchange rate = Nominal exchange rate * Price level in domestic country/price level in a…

Q: The real exchange rate of Ethiopia increased by 1.9% relative to Sudan. Observing that Ethiopia's…

A: Exchange rate refers to the worth of one currency in terms of another currency. The exchange rates…

Q: How much is the difference between the cross-exchange rates for Rupees (India) and Euro (europe)…

A: A cross rate is a quote on the foreign exchange market between two currencies (not including the US…

Q: When analyzing the exchange rates above, how would you determine if the value of the US dollar has…

A: The measure that depicts the value of one currency being measured in terms of another currency is…

Q: Suppose $2, 400 CAD could be used to purchase $2, 086.96 USD last year. Part (a): What was the…

A: Part (a) Here, it is gievn that $2,400 CAD could be pay to purchase $2,086.96 USD in the previous…

Q: 24. The inflation rate in the U.S. is 3%, while the inflation rate in Japan is 10%. The current…

A: Inflation is the rate of increase in prices over a given period of time. Here, we calculate the…

Q: Assume that in the United States $1,000 will buy the same basket of goods that 20,000 pesos will buy…

A: The exchange rate represents the currency of one country in terms of another.  Purchasing power…

Q: When you write an exchange rate in terms of how many units of a foreign currency it takes to buy one…

A: A direct quote depicts the amount of foreign currency that can be bought for a certain unit of the…

Q: In quoting exchange rates: a. One should always quote these as units of foreign currency over a unit…

A: A direct quotation is a foreign exchange rate, in which the value of a foreign currency is…

Q: In quoting exchange rates:   a. One should always quote these as units of foreign currency over a…

A: A direct quotation is a foreign exchange rate, in which the value of a foreign currency is…

Q: Price elasticity of demand is ___________________________.

A: Elasticity is a very important concept used in economics to determine the change in the quantity…

Q: 1. The principal function of the foreign exchange market is the transfer of funds, thus purchasing…

A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…

Q: 1. What is the meaning of purchasing power parity? 2. What is the difference between nominal…

A: Note : As per the policy,the first three questions have been answered. 1. Purchasing power parity is…

Q: ) Suppose the price level in India is 9,500, the price level in the United States is 140, and the…

A: The real exchange rate is the current price businesses and consumers will pay to buy a foreign…

Q: In 2021 the exchange rate between the Haitian Gourde and the US dollar is 50 to 1. If Haiti…

A: The following problem has been solved as follows:

Q: Suppose the nominal exchange rate between Russian rubles and US dollars is given as e=75 rubles. If…

A: The real exchange rate is the rate between two currencies where nominal rate is adjusted with the…