Elucidate why a currency appreciation does not improve

Assignment Help Business Economics

Reference no: EM1357540

1)Is the Federal Reserve more effective at fighting a recession than an inflation? Yes/ No? Explain your answer thoroughly

2(a) In the day-to-day foreign exchange market what type of market participant demands the euro? What type of market participant supplies the euro?

2(b) For few months, prior to your vacation trip to Germany, you find that the exchange rate for your U.S. dollar has decreased relative to the euro. If you were a U.S. citizen or resident, are you pleased?? Explain.

2(c) Explain why a currency appreciation does not improve a nation's balance of trade.

Reference no: EM1357540

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