What does a managed (or dirty) float mean? That the country's central bank fixes the value of its currency. That a country's currency is fixed to the price of gold. That a country's balance of payments is persistently in deficit. That a country's central bank buys and sells currencies in order to smooth out short-run fluctuations in its own currency. That a country's currency is fixed to the value of the U.S. dollar.

What does a managed (or dirty) float mean? That the country's central bank fixes the value of its currency. That a country's currency is fixed to the price of gold. That a country's balance of payments is persistently in deficit. That a country's central bank buys and sells currencies in order to smooth out short-run fluctuations in its own currency. That a country's currency is fixed to the value of the U.S. dollar.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

is the country of belize above or below the golden savings rate
QUESTION 9 As a result of entering the world economy, Neverland experiences economic boom and its GDP goes up to y= 13250: The functions that describe consumption and investment are still the same: cd(r) = 5000 – 1000r+ 0.25Y and Id(r) = 500 – 1800r +0.2Y. The government wants to take advantage of growth and increases its expenditures to: G- 1000: What is Neverland's current account balance? Note: Type in your answer approximated to two decimal points, i.e., your answer must be of the form "999.99". I will not be able to fix correct answers that were entered incorrectly, such as "999.999" or "999,99" or "999". In case the last digit in the correct answer is zero, e.g., "999.90" or "999.00", Blackboard will automatically delete it and you should not do anything about it.
You work for the Bureau of Economic Analysis (BEA) of the U.S. Department of Commerce. Your supervisor gives you the following U.S. International Transactions Accounts for the Year 20XX (figures are in billions of dollars) and wants it reported in a coherent fashion in accordance with accepted conventions: Investment income payments $24; Export of goods $456; Balance of services $57; U.S purchases of foreign assets were $147.; Imports of goods $589; Change in Official Reserves $15; Investment income receipts $28; Foreign purchases of U.S. assets were $230; Net unliteral transfers were ($32). ($32) means -$32. a)- He wants you to compute the balances of trade, current account, capital account and statistical discrepancy. b)- He also wants you to find out (based on your calculation) if the U.S. is a net debtor or a net creditor. Explain
For many years, the Chinese currency has been pegged to the U.S. dollar. Critics argue that this policy has resulted in an unfair advantage for Chinese manufacturers exporting product to the U.S., and has contributed to ballooning U.S. trade deficits. Pressure to revalue, including threats of trade sanctions against China, has led the Chinese government to adopt a slightly more flexible policy which pegs the Yuan to a basket of currencies rather than the dollar alone. Some in the U.S. continue to argue that this is not sufficient, and continue to exert pressure toward a policy of further revaluation. Chinese leaders feel that increasing the value of the yuan relative to the dollar would contribute to economic and political instability in China. Details: Pressures for Change China fixed the value of its currency in 1994 to the US currency Due to arguments that the yuan was undervalued and that the Chinese government needed to free the currency, the U.S. administration announced…
How would each of the following transactions show on U.S. balance of accounts?20 (i) Payments of $50 million in social security to U.S. citizens living in Costa Rica. (ii) Sale overseas of 1,25,000 Elvis Presley CDs. (iii) Tuition receipts of $3 billion received by American universities from foreign students. (iv) Payment of $1 million to U.S. consultants A.D. Little by a Mexican company. (v) Sale of a $100 million Eurobond issue in London by IBM. (vi) Investment of $25 million by Ford to build a parts plant in Argentina. (vii) Payment of $45 million in dividends to U.S. citizens from foreign companies.
If a country’s currency is overvalued in a fixed rate system, what can it do in the short-run?
effect of fiscal and monetary policy on consumer spending in Zimbabwe
In 1971 a British company, Beecham Group, received a Swiss franc loan of CHF 100 million. By the time the loan was repaid in 1976, the British pound had depreciated significantly against the Swiss franc. Which of the following statements is correct? A. The cost in British pounds of making the repayment did not change. B. The financial manager of Beecham Group would not be concerned about the change in the value of the pound. C. The change in the value of the British pound increased the profitability of the Beecham Group. D. The cost in British pounds of making the repayment increased significantly.
Answer questions 1-4 about Nigeria's macroeconomy (Nigeria's currency): Currency in Circulation (October 2020) 40.5 billion nigerian currency Reserves (October 2020) 34.2 billion nigerian currency M1 (October 2020) 2,465.9 billion nigerian currency M2 (October 2020) 2,638.8 billion nigerian currency Calculate the size of the monetary base in October 2020. one decimal place. Calculate the size of demand (checking) deposits in October 2020. Round your answer to one decimal place. Calculate the size of savings deposits in October 2020. Round your answer to one decimal place.
A. Canada produces natural resources (coal, natural gas, and others), the demand for which has increased rapidly as China and other emerging economies expand. i. Explain how growth in the demand for Canada's natural resources would affect the demand for Canadian dollars in the foreign exchange market. Explain how the supply of Canadian dollars would change. ii. iii. Explain how the value of the Canadian dollar would change. iv. Illustrate your answer with a graphical analysis. 1
Which one is correct? UK currency is a commercial bank liability UK currency is a central bank asset UK currency is a Bank of England liability
How would you expect financial markets, or exchange rates to respond to inflation?