Government impact on exchange rates

Assignment Help Business Economics

Reference no: EM131107369

"Government Impact on Exchange Rates" Please respond to the following: From the first case study, imagine a situation where the Thai government has decided to peg the Thai Baht to the U.S. dollar. Predict the major effects that such a peg could have on the U.S.’s level of inflation and the level of exports or imports to and from Thailand. Determine the fundamental manner in which a fixed exchange rate affects companies such as Blades. From the second case study, analyze the major advantages and disadvantages associated with a floating exchange rate system in Thailand. Determine the central manner in which a floating exchange rate system affects companies such as Blades. Provide a rationale for your response.

Reference no: EM131107369

Questions Cloud

How would the change in money supply growth : Suppose real GDP is growing at 3%, the money supply is growing at 10%, the velocity of monet is constant, and the real interest rate is 5%. How would the change in money supply growth (an increase by 15%) affect an investor's real profitability, assu..

Find the prot maximizing level of output : Consider a competitive firm with total costs given by TC(q) = 100 + 10q + q^2 . The firm faces a market price p = 50. Write expressions for total revenue TR and marginal revenue MR as functions of output q. Find the prot maximizing level of output q∗..

Is this consumer saver or borrower : Further suppose that the typical worker earns $210 in period 1 ad $330 in period 2; and that the interest rate is 10%. Assume the typical worker wishes to maximise their lifetime satisfaction. Is this consumer a saver or borrower? Explain.

Price elasticty of demand for medical check-ups : A Microeconomist estimates that the price elasticty of demand for medical check-ups is 0.65. This suggest that the producer of medical check-ups could:

Government impact on exchange rates : "Government Impact on Exchange Rates" Please respond to the following: From the first case study, imagine a situation where the Thai government has decided to peg the Thai Baht to the U.S. dollar. Determine the fundamental manner in which a fixed exc..

Price of elasticity of demand : If the price of elasticity of demand for football tickets is estimated to be 2.8, then a 5 percent increase in football ticket prices would be expected to cause a:

Two points on the demand curve : The data in the table above give two points on the demand curve for pizza. Using the midpoint method when the price of a pizza falls from $10 to $9, what is the price elasticity of demand?

Negative consequences of taking advantage of resources : Describe an example of a person who is taking advantage of resources, and another example of a person who is not taking advnatage of resources. Discuss the positive and negative consequences of taking advantage of resources.

What weaknesses are commonly associated : What weaknesses are commonly associated with the use of the payback period to evaluate a proposed investment?

User Account

All Pages