What would happen if the market believed devaluation

Assignment Help Microeconomics
Reference no: EM13868808

When a central bank devalues after a balance of payments crisis, it usually gains for- eign reserves. Can this ?nancial in?ow be explained using our model? What would happen if the market believed that another devaluation would occur in the near future?

Reference no: EM13868808

Questions Cloud

Calculate sky company''s income tax : Sky Company reports a pretax operating loss of $50,000 in Year 3 for both financial reporting and income tax purposes.
How might devaluation affect national domestic investment : Devaluation is often used by countries to improve their current accounts. How might devaluation affect national saving and domestic investment?
Analyze balance of payments effects of an import tariff : Using the DD-AA model, analyze the output and balance of payments effects of an import tariff under ?xed exchange rates.
Paraphrase rather than directly quote citations : Paraphrase rather than directly quote citations
What would happen if the market believed devaluation : Can this ?nancial in?ow be explained using our model? What would happen if the market believed that another devaluation would occur in the near future?
How understanding the historical-cultural context : Please give and explain an example of how understanding the historical-cultural context can shed significant light on the meaning of a specific biblical text
Identify the organization''s primary product or service : Identify the organization's primary product or service.
Calculate kline''s intraperiod income tax expense : The company is subject to income tax rates of 30% on the first $40,000 of income and 35% on all income in excess of $40,000. Prepare a schedule to calculate Kline's intraperiod income tax expense (and credit) amounts.
How do esf operations affect foreign exchange risk premium : U.S. foreign exchange intervention is sometimes done by an Exchange Stabilization Fund, or ESF. How do ESF operations affect the foreign exchange risk premium?

Reviews

Write a Review

Microeconomics Questions & Answers

  Financial crisis

It is estimated that the U.S. financial crisis of 2008 led to a loss of $7 trillion in the real estate industry due to the decline in housing prices. The stock market decline brought another $11 trillion in losses, and retirement accounts lost $3.4 t..

  What number of subscribers will minimize ac for the firm

Where Q is millions of subscribers What is the total cost function What is the marginal Cost function What number of subscribers will minimize AC for this firm What is the level of AC at this output

  Review panel of national science foundation

You are attending a national conference. Inside the elevator you meet the director of the grant review panel of National Science Foundation. She asks you what kind of research you are working on now. Please write an appealing summary of your study..

  Examples of issues that affect our decision-making processes

Describe two economic examples of issues that affect our decision-making processes and that may change our quality of life.

  Use this equation to show and explain young theorem

The great philosopher Rogers once said that you need holding knowledge (H), folding knowledge (F), and economics knowledge (E).Therefore, overall knowledge (K) can be expressed as

  Effect of the investment schedule

Describe how each of following will affect consumption and saving schedules as they relate to GDP or the investment schedule, other things equal,

  Monopolys high market power enhances research-development

Some economists argue that a monopoly’s high market power enhances research and development. However, a good argument against that could be:

  Antitrust authorities at the federal trade commission

Antitrust authorities at the Federal Trade Commission are reviewing your company’s recent merger with a rival firm. The FTC is concerned that the merger of the two rival firms in the same market will increase market power.

  Price elasticity of demand for dormitory space

In a practical sense, write your opinions on the effect a rule stating that university students must live in university dormitories would have on the price elasticity of demand for dormitory space.

  Exchange rate to make the conversion

Japanese GDP in 2010 was 480 trillion yen while U.S. GDP was $14.5 trillion. The exchange rate in 2010 was 87.8 yen per dollar. Japan had higher prices than the United States: the price level in Japan (converted to dollars) divided by the price level..

  Advertising in monopolistic competition-oligopoly

Why there is so much advertising in monopolistic competition and oligopoly? How does such advertising help consumers and promote efficiency?

  Drawing the economy production possibilities

Discuss how does the existence of money decrease the expenses of making transactions, relative to a society based entirely on barter?

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