How is the exchange rate influenced by inflation
‘The country has a floating exchange rate and its inflation rate is much higher than its trading partners. Why we would suppose the country’s exchange rate to deflate?’
Expert
Because of the consequence on demand and supply of currency and the new equilibrium. It distinguishes among real and nominal values.
Which transactions find out the balance of trade? When the balance of trade is in surplus?
market structure and price-output determination
Which transactions- autonomous or accommodating carry balance in BOP? Answer: Accommodating transactions carry balance in the BOP or balance of payment.
Components of current account of BOP account: (A) Import-Export of goods(B) Import-Export of services(C) Unilateral transfers
distinguish between autonomous transactions and accommodating transactions under balance of payments
Why foreign currency or exchange is required? Answer: a) To buy services and goods from other countries. b) To send a gift abroad. c) To buy financial assets in a specific country and d) To contem
Examining US–Canadian imports-exports and analyzing a call to protect the US lumber business.
Foreign exchange rate: The Foreign exchange rate is a price of foreign currency in terms of domestic currency.
Describe the meaning of deficit in BOP: Whenever autonomous foreign exchange payments surpass autonomous foreign exchange receipts, the difference is termed as balance of payments deficit.
Let us suppose that US gasoline market has the demand and supply curvesQd = 10 – 0.5PdQs = -2 + Ps when Ps ≥ 2 and Qs = 0 if Ps < 2, Discover Q & A Leading Solution Library Avail More Than 1433966 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1945903 Asked 3,689 Active Tutors 1433966 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
18,76,764
1945903 Asked
3,689
Active Tutors
1433966
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!