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Explain why us presidents often favor a lower dollar

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Reference no: EM133535822

Assignment:

Utilizing the two sources of information below, explain the factors that can affect the relative value of one currency to another in the global economy.

  • Euro vs. US Dollar
  • Lumen: Microeconomics

Again, using the same two sources, explain why U.S. presidents often favor a "lower dollar" over the course of their presidency.

  1. Explain the relationship between the relative value of the dollar and its relationship to U.S. exports and imports.
  2. Posit the effect of the relative value of the US dollar and the impact on US GDP. Using the equation for GDP, GDP = C + I +G + (X-M), which of the various components of GDP would be most affected by changing currency levels? Explain with references.

Reference no: EM133535822

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