What would happen in the long run

Assignment Help Macroeconomics
Reference no: EM131167754

If the foreign inflation rate rises permanently, would you expect a floating exchange rate to insulate the domestic economy in the short run? What would happen in the long run?

In answering the latter question, pay attention to the long-run relationship between domestic and foreign nominal interest rates.

Reference no: EM131167754

Questions Cloud

Describe the key characteristics of a whistleblower : Briefly summarize one (1) researched instance of whistleblowing in one (1) publicly traded company within the last 12 months. Include the details of the issue that the whistleblower reported and the effect of the whistleblower's actions on ..
Calculate the population risk : Assume that no one in the population died or was lost during the follow-up period. Calculate the population risk difference using the given data. The numeric value of the population risk difference is...
How much of an average performance improvement has : You do the same after the software has been installed. How much of an average performance improvement has the new software provided?
What is the solution of this recurrence relation : Suppose that every hour there are two new bacteria in a colony for each bacterium that was present the previous hour, and that all bacteria 2 hours old die.
What would happen in the long run : In answering the latter question, pay attention to the long-run relationship between domestic and foreign nominal interest rates.
Government source for fuel economy information : Fuel efficiency of Prius:  Fueleconomy.gov, the official US government source for fuel economy information, allows users to share gas mileage information on their vehicles. The histogram below shows the distribution of gas mileage in miles per gal..
Explain how to count the number of derangements of n object : Why is counting the number of ways a hatcheck person can return hats to n people, so that no one receives the correct hat, the same as counting the number of derangements of n objects?
Minimizes the effect on output-fixed or floating : Which exchange rate regime minimizes the effect on output-fixed or floating?
Conduct an appropriate test at the alpha : They wanted to determine whether the hippocampal volumes in the alcoholic adolescents were less than the normal volume of 9.02cm cubed. An analysis of the sample data revealed that the hippocampal volume is approximately normal with x overbar equa..

Reviews

Write a Review

Macroeconomics Questions & Answers

  How increase in savings affected overall consumption

Following the recession, the rate of savings in the united states doubled. why do you think this is How do you think the increase in savings affected overall consumption? Since, on average, 70% economic activity in the United States

  Elucidate need for full disclosure in financial reporting

Elucidate the need for full disclosure in financial reporting. Identify possible consequences of failing to properly disclose certain items in financial statements.

  Evaluate the range of marginal revenues

Evaluate the range of marginal revenues

  Explain briefly the advantages and disadvantages

Explain briefly the advantages and disadvantages for each tool the Fed can use to manipulate the federal funds rate.

  Explain predicted impact of decline in consumer confidense

use the long-run model of a small open economy to illustrate graphically the impact of this decline in consumer confidence on the exchange rate and the trade balance.Assume the country starts from a position of trade balance.

  Estimate value of the benefit that each unit provides

The market demand for a public good can be determined by A)adding up how much each consumer is willing to pay for each unit of the public good. B) Adding up how much each citizen expects to consume at each possible price C) Adding up the total pri..

  Question on perfect competition

Discuss and explain perfect competition and long-run equilibrium. Provide detailed descriptions, definitions and concrete examples of your findings.

  Explain how do they impact the domestic economies

Explain how do they impact the domestic economies of nations. How do they affect individual business decisions.

  With the per-unit prices of broccoli b and pork rinds r

With the per-unit prices of broccoli (B) and pork rinds (R) equal to $2 and $1, a consumer, George, with an income of $1,000 purchases 300B and 400R. At that point, the consumer’s MRSBR = 3 R/1 B.

  Social security game to solve the social security problem

Play the social security game to solve the Social Security problem. Detail your choices, noting the why's of your choices and also discuss the effects on the stability of employment, inflation, and GDP as a result.

  Complete the following to gain a better idea of the various

Taxes greatly influence U.S. economy. Because of this influence, it is good to know the effects they have in the economy and on a personal level. Complete the following to gain a better idea of the various types of taxes, their influences, and how th..

  Show that a 9 percent yield also will be earned if interest

Show that if interest rates rise to 10 percent within the next year and your investment horizon is four years from today, you will still earn a 9 percent yield on your investment.

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