EBK MACROECONOMICS
5th Edition
ISBN: 8220106773925
Author: KRUGMAN
Publisher: MAC HIGHER
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Chapter 18, Problem 10P
To determine
Concept Introduction:
Equilibrium in Exchange Market:
It is the point where the demand for a currency is equal to the supply of a currency in the exchange market. Under the fixed exchange rate, government intervention ensures such a point.
Fixed Exchange Rate:
This is an exchange rate system under which there is an intervention by the government to control the fluctuation and this is known as fixed exchange rate.
Nominal Exchange Rate:
The rate at which currencies are exchanged in the exchange market is known as the nominal exchange rate.
Flexible Exchange Rate:
This is an exchange rate system under which there is no intervention by the government, rather the rate is determined by the demand and supply phenomenon.
To explain: The way to keep the exchange rate at a fixed value in the case of an increase in the demand of goods and services.
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Descriptive statistics provide details about the Y variable, based on the sample for the 10-year period. Here, you use Excell or manually compute
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Draw the line chart showing the educational performance over the time-period of your study. Label the Vertical axis as Y performance and X axis as the explanatory variable (X1) . Do the same thing between Y and X2
Empirical/ Inferential Statistics: Here, use the sample information to perform the following:
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Draw the scatter plot and impose the tend line: Showing Y and X2.
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Years
Y ( per…
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