ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337408059
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 20, Problem 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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(2) Why do we need foreign exchange? Write a brief note on the differences between fixed and flexible exchange rate systems by describing 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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Chapter 20 Solutions

ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

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