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

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: 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: You read in the paper that the dollar has strengthened in value relative to the euro. How is this…

A: Value of a currency states the price or interest rate at which people from different countries are…

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: Contrast the effects of having a fixed versus a floating exchange rate for a country’s economy

A: Exchange rate are the currency values which are used by the countries for the purpose of imports…

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: when a domestic investor buys a foreign asset, the financial account would rise, stay the same or…

A: When a domestic investor buys a foreign asset ,  the financial account status can be explained as…

Q: How to calculate Balance of trade and the current account ?

A: Fares are products or administrations made locally and offered to an outsider. That incorporates…