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.
Who won the Nobel Prize for Economics in 1997?
Deficit in balance of trade point: Deficit in balance of trade points out that the imports of good are bigger than exports.
Explain the Economic environment in Australia and Internationally and their factors which affect them?
Explain all the approaches of Paul Samuelson.
Balance of payments (BOP) always balances. Describe it. Answer: Balance of payments is for all time balanced. The negative balance on current account is equated wit
Describe the two sources of supply of foreign exchange: The two sources of supply of foreign exchange are: Exports and foreign tourism.
‘How is the equilibrium £:€ exchange rate presently determined? When UK was aiming to adopt the euro in the next to future we would be predicted to ‘shadow’ the euro for a while (the £:€ exchange rate would change merely among v
I NEED TO UNDERSTAND MORE ABOUT International product life cycle
Flexible exchange rate: The rate of exchange in terms of other currencies is determined by market forces of demand-supply.
In simple circular flow model, the only entities which finally consume goods, own resources, pay taxes or bear the loads of inflation, experience joy, or suffer pain, are as: (i) corporations. (ii) Households. (iii) Government agencies. (iv) Business
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