Fixed exchange rate and perfect capital mobility

Assignment Help Macroeconomics
Reference no: EM132550977

Suppose Fiji (or any small economy, with fixed exchange rate and perfect capital mobility) devalued its currency. What would be the likely consequences? Draw a graph and commentary to explain the effects on income, interest rate, consumption and tax revenue.

Reference no: EM132550977

Questions Cloud

What does film suggest about the causes of human alienation : Watch Princess Mononoke, and then, analyze the film according to the previous four weeks' reading. What does the film suggest about the causes and solutions.
Determine what transfer price would recommend : Determine What transfer price would recommend if there was no outside market for the transferred component and assembly division had spare capacity?
How fraud originating in the Revenue Cycle can be prevented : Explain how fraud originating in the Revenue Cycle can be prevented. Discuss how fraud in the Expenditure Cycle can be detected
Explain suggest three performance measures : Discuss If the company is successful in achieving challenging targets for these performance measures, will it also necessarily achieve high profitability?
Fixed exchange rate and perfect capital mobility : Suppose Fiji (or any small economy, with fixed exchange rate and perfect capital mobility) devalued its currency.
How much of this expenditure is deductible : How much of this expenditure is deductible for determining GAAP? income, and how much is deductible in determining Net Income for Tax? Purposes
Offer for a unilateral contract and bilateral contract : What is the difference between an Offer for a unilateral contract and an Offer for a bilateral contract? Why might that difference be important to understand?
Discuss a career development program should be viewed : Discuss A career development program should be viewed as a proactive and dynamic process that attempts to meet the needs of managers
Compute gdp-ndp and ni : Compute gdp, ndp and NI. If Comensations of employees =194.2 U.S exports of goods and services =17.8

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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!

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