Suppose the Fed decides it wants to maintain output at the potential GDP level of $125 million even with this change in fiscal policy. To achieve this, the government pursues monetary policy, such as bonds. Because of these changes in monetary and fiscal policy, interest rates, resulting in an economy uses a floating exchange rate, this change causes the dollar to which aggregate output. " of investment from foreigners. If the net exports, Grade It Now Save & Continue Continue without saving

Suppose the Fed decides it wants to maintain output at the potential GDP level of $125 million even with this change in fiscal policy. To achieve this, the government pursues monetary policy, such as bonds. Because of these changes in monetary and fiscal policy, interest rates, resulting in an economy uses a floating exchange rate, this change causes the dollar to which aggregate output. " of investment from foreigners. If the net exports, Grade It Now Save & Continue Continue without saving

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What determines the exchange rate? If a nation's currency appreciates in the foreign market, how will this impact net exports? Explain. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
If Canada borrows more from the foreign countries than it lends to the foreign countries, then Canada must have A. a current account deficit. OB. a net capital flow. O C. a financial account surplus. D. All of the above.
A loyal Apple customer, has set out a table of Apple’s net sales also adding his/her expectations about 2021 developments. (1) Knowing that US dollar is strengthening against foreign currencies, do you agree with the 2021 net sales figures of iPad and Services? (2) Assuming that net sales of iPhones not being largely affected by the exchange rate developments but by new versions of iPhones, would you expect percentage share of net sales of iPhones to increase or decrease with stronger US. dollar against foreign currencies in 2021 (but without launching new iPhone models)? (3) Do you agree with your friend’s claim that long-term net sales changes cause translation exposure to Apple?
Sub : EconomicsPls answer very fast.I ll upvote. Thank You a small open economy is described by the following equations: C = 50 + .75(Y-T) I = 200 - 20r NX = 200 -50e M/P = Y -40r G = 200 T = 200 M = 3000 P = 3 r* = 5 a. Derive and graph the IS* and LM* curves. b. Calculate the equilibrium exchange rate, level of income, and net exports c. Assume a floating exchange rate. Calculate what happens to the exchange rate, the level of income, net exports and the money supply if the government increases spending by 50. Use graph to illustrate what you find. d. Now assume fixed exchange rate. Calculate what happens to the exchange rate, the level of income, net exports and the money supply if the government increases spending by 50. Use graph to illustrate what you find.
Sub : FinancePls answer very fast.I ll upvote. Thank You
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The benefits of adopting a flexible exchange rate is that, a.in response to shocks to the demand for Australian exports, the value of the currency would adjust to moderate these effectsb. changes in the interest rate will have no effect on the exchange rate that is determined in the foreign exchange market c.the exchange rate can be more volatile d. an economy will be able to well predict the prices of exports and imports Why A is the correct answer? What is meant by a flexible exchange rate?
1. A. Explain how nominal exchange rate affects real exchange rate.B. Suppose that a chocolate bar costs 20 euros in France and 30 Singaporean dollars inSingapore. If the exchange rate is 1.20 euros per Singaporean dollars, What is the realexchange rate?2. Suppose the economy is in recession. Policymakers estimate that aggregate demand is$100 billion short of the amount necessary to generate the long run natural rate of output.That is, if aggregate demand were shifted to the right by $100 billion, the economy wouldbe in long run equilibrium.a. Explain the impact on the economy if the government chooses to use fiscal policy tostabilize the economy and the marginal propensity to consume (MPC) is given as0.75 with no crowding out.b. If there is a crowding out effect and investment is very sensitive to changes in theinterest rate, should the government increase spending more or less than this amount?3. Suppose, OPEC decides to cut down oil production, causing oil price to go up.a. Explain…
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** • The Mexican Pese has weakened considerably relative to the dollar and trying to decide whether this is good time to invest in Mexico. you are Support exchange the current rate of the Mexican Peso relative to the 0x feller is MXN(S-8202/USD. Your investment advisor argues that the fee will love 102 of its value relative to the follar What is the invertment advicer's forecart of the exchange rate in lys? over the next year.
6. In a small open economy undertaking a fiscal contraction, the real interest rate should: rise fall stay the same move by the same amount as the exchange rate
What is happening to the Pakistani real exchange rate in each of the following situations? Explain. a. The Pakistani nominal exchange rate is unchanged, but prices rise faster in Pakistan than abroad. b. The Pakistani nominal exchange rate is unchanged, but prices rise faster abroad than in the Pakistan. c. The Pakistani nominal exchange rate declines, and prices are unchanged in the Pakistan and abroad. d. The Pakistani nominal exchange rate declines, and prices rise faster abroad than in the Pakistan?