User Account

All Pages

Central bank of the hypothetical country

Assignment Help Business Management
Reference no: EM132405740

A hypothetical country has an open economy. Assume that this country allows capital to flow freely and that it has a fully independent central bank. This same country would also like to have a fixed exchange rate with the United States.

  1. Is this possible? If it is possible, explain how a country would maintain a fixed exchange rate with the United States. If it is not possible, explain why not.
  2. If the Fed (central bank of the United States) decides to increase the money supply, how would the central bank of the hypothetical country maintain its fixed exchange rate?

Reference no: EM132405740

Questions Cloud

What is ricardian equivalence : Why is the government purchase multiplier greater than the tax multiplier? Are there any arguments that suggest that the government purchase
Large open economy is against bermuda : Assume that the trade restriction policy implemented by the large open economy is against Bermuda. Consider the short-run impact of the U.S. policy
Describe the details of loans explained in the article : Describe the details of the two types of loans explained in the article; Identify and describe a situation that would fit well for each type of loan
Restrict imports using import tariffs : Consider the short run. Assume that a large open economy (such as the United States) decides to restrict imports using import tariffs.
Central bank of the hypothetical country : If the Fed (central bank of the United States) decides to increase the money supply, how would the central bank of the hypothetical country maintain its fixed
How does the reserve bank of australia : How does the Reserve Bank of Australia set the interest rate? What are the main factors that determine its decisions?
DSO102 Design Studio 1 Assignment : DSO102 Design Studio 1 Assignment Help and Solution, Torrens University - Assessment Writing Service - Apply specified design software skills
Goal of government is to hold debt-gdp ratio constant : If the goal of the government is to hold the debt-GDP ratio constant, what must be the size of the primary surplus and the size of total budget surplus?
Kind of economic argument could be made against fracking : Based on these potential costs to the population at large, what kind of economic argument could be made against fracking?

Reviews

Write a Review

Business Management Questions & Answers

  Results of posting a question

For this activity, you will discuss the results of posting a question to your LinkedIn  (Links to an external site.)network or other social media platform of your choice. Your question should be related to customer value in the marketing domain an..

  Determine what type of risk-based impacts

1. Determine what type of risk-based impacts X Axis would encounter in such a situation.

  Should amazon collect state sales tax in every state

Should Amazon collect state sales tax in every state? Would it be beneficial to the company? To the customers?

  Working on a lifelong project

If you consider your path as a student from the first day of class to now, you may observe that you are also working on a lifelong project. In this Application you will reflect on your college-level career as a project and analyze it using standar..

  Leveraged and unleveraged capital structures

What are the impacts of the following on BECA Corporation's value, given the following information? SHOW ALL CALCULATIONS, and make a summary.

  How stewardship is related to change management

In your opinion, how stewardship is related to change management, As a leader, what is the most important item to steward during change?

  Define the three legs of the organizational stool

The three legs of the organizational stool are reward systems. performance evaluation systems

  Why is compliance with international trade laws important

You have been asked to study the issues involved in getting your company totally in compliance with international rules and regulations governing overseas trade. Why is compliance with international trade laws important?

  Manager ethical dilemma

You are the manager of a factory of the Make-It Company. You have 5,000 parts that must be shipped by Friday at 5:00 p.m.

  Process of diversifying and opening up a new subsidiary

The organisation is in the process of diversifying and opening up a new subsidiary in Shanghai

  Web browser of gallup organization home page

Visit the web browser of Gallup Organization's home page http://www.gallup.com and research the site. Then go to http://www.gallup.com/topic/methodology.aspx and read about the methods that Gallup uses. Now look up the latest polls and write a 500..

  Database essentials for business

Why is data security important now more than ever? What are some of the steps that we can take to ensure that our database is protected and secure?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd