ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 20, Problem 4.6P
To determine
The difference between fixed and flexible exchange rate and the governmental measures to maintain fixed exchange rate.
Concept Introduction:
The method by which the currency of a country is regulated by its authority in accordance with other countries currencies and foreign exchange markets is known as the Exchange rate regime. The exchange rates are generally classified into fixed exchange rate and flexible exchange rate.
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Why do we need foreign
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the concepts of appreciation,
depreciation, revaluation and
devaluation of currency. Give some
reasons in a short note that why the
country goes for fixed exchange rate
system?
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