Prevent the exchange rate from falling

Assignment Help Business Economics
Reference no: EM13834862

If the Fed wished to defend the exchange rate of the $ (i.e. prevent the $ exchange rate from falling) what policy action could it take? Explain.

Reference no: EM13834862

Questions Cloud

Anti-poverty programs : Anti-poverty programs
Monopolist is earning positive profit after wage increase : A profit maximizing monopolist is earning a positive economic profit. The wage it pays its workers rises. How will the firm's choice of price and quantity change in response to the wage increase? Assume that the monopolist is still earning a positive..
Standard labor-hours per unit of output is closest : Churdle Corporation makes a single product. In a recent period 4,080 units were made and there was an unfavourable labor efficiency variance of $26,800. Direct labor workers were paid $8 per hour and total wages were $190,000. The labor rate variance..
Explain and draw the market and then the typical firm : In a perfectly competitive market, demand for hairbrushes goes down. How does the market and a typical firm respond in the short and long run? Explain and draw the market and then the typical firm (two drawings, one for market, one for firm)
Prevent the exchange rate from falling : If the Fed wished to defend the exchange rate of the $ (i.e. prevent the $ exchange rate from falling) what policy action could it take? Explain.
What is the purchasing power parity theory of exchange rates : What is the "purchasing power parity" theory of exchange rates? If the price of a representative bundle of tradable goods is currently $5000 in the U.S. and 550000 yen in Japan, is the $ undervalued or overvalued when the exchange rate is 90 yen per ..
What is the present worth : You purchase an item today. You pay $600 down, $400 at the end of the first year, $300 at the end of the third year, and $200 at the end of the fifth year. Assuming 18% per year compounded annually, what is the present worth?
How the monetary tool work and how it affects money supply : Describe in details how the FED bank uses each of the three monetary policy tools, in order to decrease money supply. In your explanation describe who is responsible for setting the monetary tool and how the monetary tool work and how it affects mone..
Relationship between governments budget deficit-spending : The relationship between the government's budget deficit and its spending is:

Reviews

Write a Review

Business Economics Questions & Answers

  Official settlements balance

Illustrate what is the capital account balance. Illustrate what is the official settlements balance.

  Calculate gdp loss and government expenditure needed

Calculate GDP loss and government expenditure needed to eliminate this loss if full employment GDP is $400, unemployment rate 8.9%, and the MPC is 0.8.

  What will the firms short run profits be

Suppose a firm in a perfectly competitive industry has a short run total cost function given by TC=1100+0.02Q^2 and a marginal cost given by MC=0.04Q. If the market price is 12, what will the firm’s short run profits be?

  Managers generally benefit from acquisitions

Which of the following is not a way managers generally benefit from acquisitions?

  Varied making expenditures

The GDP is a total market value of final goods and services produced within a country over time. Why is this a reflection of this country's cost of living so varied making expenditures.

  Diagram of the market for money and the aggregate supply/

Draw, side by side, a diagram of the market for money and the aggregate supply/ aggregate demand to illustrate how inflation is created. Initiate the process in the AS-AD diagram with negative supply shock that the central bank decides to "accommodat..

  Determine about consumer demand

What can you determine about consumer demand for your product from this information.

  For any given level of output

For any given level of output:

  Determine how sensitive the decision to invest

Determine how sensitive the decision to invest in the new facility is to the estimates of initial cost and net annual revenue. Use a MARR of 4% per year and a 5-year study period.

  Why might some firms voluntarily pay workers a wage

Why might some firms voluntarily pay workers a wage above the market equilibrium, even in the presence of surplus labor?

  What is the result of the two actions on the economy

In 1975, President Ford proposed a $28 million cut in government spending and a $28 million tax cut, what is the result of the two actions on the economy? Show you work. Hint: notice that the numbers are the same - $28 million.

  Competitive equilibrium with the ad valorem tax

Suppose the government imposes an ad valorem tax on coal producers of 7% of the sale price. What is the competitive equilibrium in the absence of the tax? What is the competitive equilibrium with the ad valorem tax? What is the change in consumer sur..

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