Proximate cause of this depreciation is actions

Assignment Help Business Economics

Reference no: EM13795681

The euro has been depreciating against the $ for the past several months. The proximate cause of this depreciation is actions taken by the European Central Bank (ECB).

What were those actions?

Why did the ECB take those actions?

Were the actions intended to move the European AS curve or the AD curve? In what direction?

Suppose you are an American who had been planning to vacation in Italy this summer. You were planning to do this before the euro started to depreciate. Should you change your plans now? Why or why not?

From the point of view of the US, how will depreciation of the euro affect net exports (X-M), the AS curve and the AD curve?

Holding everything else constant, did the depreciation of the euro make the Federal Open Markets Committee more likely or less likely to raise the federal funds rate in the next few months? Or is it irrelevant for this decision? Explain your answer.

Reference no: EM13795681

Questions Cloud

Assignment on nipp : Analyze the National Infrastructure Protection Plan and Risk Management Framework, located at, and conclude how it has been designed to protect the nation's critical infrastructure.

Scottish independence referendum had passed : Suppose (contrary to fact) that the Scottish independence referendum had passed, Scotland had become independent, and you became its finance minister. Your first order of business is to recommend a currency for Scotland. Three proposals have been mad..

Describe a product that you are familiar with : Describe a product that you are familiar with and outline its market structure - Using at least one of the techniques described in the article, discuss how you would price the product in order to maximize profits.

Refraction and the refractive index of water : Find the image location, circle that point and label it "I". Measure and record the object distance do and the image distance di. What can you say about the location of the image? Refraction and the Refractive Index of Water

Proximate cause of this depreciation is actions : The euro has been depreciating against the $ for the past several months. The proximate cause of this depreciation is actions taken by the European Central Bank (ECB). What were those actions? Why did the ECB take those actions?

Retrograde motion of a plane related issues : In general, what are the characteristics of the planets that have been found so far around other stars?

How lighting is used to enhance or detract from production : Describe how lighting is used to enhance or detract from the production. Analyze how the camera's use (camera angles, for instance) affects the overall production.

Investment and government spending exogenous : Consider the following simple model with investment and government spending exogenous:

Significant challenges for health policy : One of the significant challenges for health policy is not necessarily the implementation of programs but the influence of the political climate in regard to both the financial support and control of the programs.

User Account

All Pages