whether fiscal policy was effcetive during the stagflation of 1970s in the US along with the reasons for the same. Concepts Introduced Fiscal Policy- It is the government’s plan of action or strategy with respect to the public revenue and expenditure to influence the nation’s economy. Stagflation - Stagnation implies low economic growth rates and high rate of unemployment in the economy. Inflation, on the other hand, a persistent rise in the prices over a given period of time. An economic phenomenon whereby the stagflation and inflation simultaneously define a country’s economy is called stagflation.

Question

China is a leader in international trade, has one of the highest GDPs, and currently holds the largest foreign exchange reserve in the world. Is it fair for China to fix its currency by undervaluing it on the market? How does keeping its currency undervalued give it a favorable position in international trade? What about from the viewpoints of international companies and consumers?

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Chapter 11, Problem 9P

To determine

whether fiscal policy was effcetive during the stagflation of 1970s in the US along with the reasons for the same.

Concepts Introduced Fiscal Policy- It is the government’s plan of action or strategy with respect to the public revenue and expenditure to influence the nation’s economy.

Stagflation- Stagnation implies low economic growth rates and high rate of unemployment in the economy. Inflation, on the other hand, a persistent rise in the prices over a given period of time. An economic phenomenon whereby the stagflation and inflation simultaneously define a country’s economy is called stagflation.

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China is a leader in international trade, has one of the highest GDPs, and currently holds the largest foreign exchange reserve in the world. Is it fair for China to fix its currency by undervaluing it on the market? How does keeping its currency undervalued give it a favorable position in international trade? What about from the viewpoints of international companies and consumers?

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Responsd to Luis Rodriguez 1800 tons of pomegranates a year is a lot of sweetness! So, you can get 71 Afghanis for $1? How cool. Does that mean you can buy a lot of stuff in Afghanistan for only $1? How do you know that your purchasing power in Afghanistan is stronger than in the United States? Yes, with an exchange rate of 71 Afghan Afghani for 1 US dollar, you can buy many things in Afghanistan for just $1. However, purchasing power isn't solely determined by the exchange rate. It also depends on the cost of goods and services in each country. For example, if a meal in Afghanistan costs 200 Afghanis, you would need about $2.82 to buy that meal in US dollars (since 200 Afghanis divided by 71 Afghanis per dollar equals approximately $2.82). So, while the exchange rate allows you to get more Afghanis for your dollars, you also need to consider how much things cost in Afghanistan. Now that the world seems to like Afghani stuff and is buying more of it, does that mean your…