User Account

All Pages

Characterize the relationship between the rupee and dollar

Assignment Help Business Economics
Reference no: EM133082852

Part I: Please answer the following three questions.1.Not all exchange-rate pegs are created equal! In this question you will explore trends in exchange rates. Go to the St. Louis Federal Reserve's Economic Data (FRED) website at https://research.stlouisfed.org/fred2/ and download the daily United States exchange rateswith East Caribbean dollar, India rupee, and Mexican peso from 1995 to the present. These can be found most easily by searching for the country names and "daily exchange rate."

A, Plot the Indian rupee to the U.S. dollar exchange rate over this period. For what years does the rupee appear to be pegged to the U.S. dollar? Does peg break? If so, how many times?

B. How would you characterize the relationship between the rupee and the dollar from 1998-2008? Does it appear to be fixed, crawling, or floating during this period? How would you characterize it from 2008 onward?

C,.The East Carribean dollar has maintained its peg with the United States dollar since 1962.Over the course of the period downloaded data what are the highest and lowest values forthis exchange rate?

D, Mexico has been less successful in its attempts to fix the peso against the US dollar. Since 1995 how many times has the Mexican peso peg to the U.S. dollar broken? What isthe average length of a peg? What is the average size of the devaluation?

2, Using diagrams of the money and foreign exchange markets to answer the following questions about the relationship between the British pound (£) and the U.S. dollar ($). Focus on the exchange rate between the U.S. dollar per British pound (E$/£). We want to consider how a change in the U.S. money supply affects interest rates and exchange rates.In all figures, label the initial equilibrium A

A, Illustrate how a permanent increase in the U.S. money supply affects the money and foreign-exchange markets. Label the new short-run equilibrium point B.

B, Using your diagram from (a), state how each of the following variables changes in the short-run (increase, decrease, no change): U.S. interest rate, British interest rate, E$/£, E$/£e, and U.S. price level. Please summarize your results in a table.1 3.You are given the following information. The current spot exchange rate is U.S. $1.33 per pound sterling. A basket of goods th

Reference no: EM133082852

Questions Cloud

Tensions between the democracy and empire : What does the Ottoman and Russian experiences tell us about tensions between the democracy and empire?
Does production converge to the nash equilibrium : Consider a model where two firms choose some variable q (firm 1 chooses q 1 and firm 2 chooses q2). Their reaction curves are R1(q2)=12 - 2q2, and R2(q1)=12 - 2
Disadvantages of global matrix organisational structure : Discuss the advantages and disadvantages of the global matrix organisational structure. Provide appropriate examples in your response.
Explain the new theory and paradigm of regional development : Explain the new theory and paradigm of regional development according to Stimson et al. (2009).
Characterize the relationship between the rupee and dollar : Part I: Please answer the following three questions.1.Not all exchange-rate pegs are created equal! In this question you will explore trends in exchange rates.
What is utility maximizing rule : The internet is not providing me with easy definition so It would be great if you can explain it to me what is Utility Maximizing rule and please give an exampl
Is there a business rationale for such a strategy : 1. During the early days of the Internet, most dot-coms were driven by revenues rather than profits. A large number were even driven by "hits" to their site rat
What is selection : What is selection? Provide an example a show that self-selection can make it difficult to evaluate the effect of policies.
How should affect the pricing decisions of airline : For an airplane that is about to take off with empty seats, the marginal cost of an extra passenger is very low; the total cost of the trip is not significantly

Reviews

Write a Review

Business Economics Questions & Answers

  What extent the traditional definition of economics

To what extent is to greek proverb "Happiness is the full utilization of your capacities along lines of excellence." similar and different from the traditional definition of economics.

  Model this situation as a two-person prisoner

Model this situation as a two-person prisoner's dilemma in which the strategies are to study a little and to study a lot, and the players are the male student

  Equilibrium output equals

Assume that the marginal propensity to consume is 0.90 and autonomous consumption expenditures equal $100 billion. Further, assume that planned investment spending is $300 billion and government spending, taxes, and net exports are zero.

  Population of europe in the 19th and early 20th century

Which of the following statements is NOT true regarding the population of Europe in the 19th and early 20th century?

  Explain why a lorenz curve can never lie

Explain why a Lorenz curve can never lie to the left or above the 45 degree line.

  Assume that every driver faces a 1 probability of an

assume that every driver faces a 1 probability of an automobile accident every year. an accident will on average cost

  What is norway total gain in consumer surplus

What is Norway's total gain in consumer surplus once it begins to trade?

  What is the optimal pair of two-part tariffs

What is the optimal pair of two-part tariffs: the pairs Fr - the entry fee and pr - the price per unit that monopoly intends for the rich guy and Fp.

  Pressure for the canadian dollar to change in value

Suppose that Canada decides to peg its dollar ($C, or the loonie) to the U.S. dollar at an exchange rate of $C1 = $US1. If the U.S. IS curve shifts to the left, will there be pressure for the Canadian dollar to change in value against the U.S. dollar..

  Government offers a temporary tax credit

For each of the following changes in the macro-economy, show how to think about them using the IS curve, and explain how GDP is affected in the short-run. The government offers a temporary tax credit: for each dollar of investment that firms undertak..

  Residential rental property

On October 1, Golshan paid $250,000 for a residential rental property. This purchase price represents $200,000 for the building and $50,000 for the land. Five years later, on June 25, she sold the property for $250,000. Compute the MACRS depreciation..

  Decision management and decision control be separated

Should decision management and decision control be separated? As part of your discussion, provide a real-world example (or provide a fictitious example) of a firm where the control (correctly) resides with the same individual as well as an example of..

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