Exchange rate between the dollar and the euro, International Economics

Assignment Help:

Q. What is the real exchange rate between the dollar and the euro equal to?

Answer: Let actual dollar/euro exchange rate q$/ENominal exchange rate E$/EPrice of an unchanging basket in US PUS Price of an unchanging basket in Europe PE Then q$/E = E$/E PE / PUS. A boost in the real dollar/euro exchange rate is called as a real depreciation of the dollar beside the euro a decrease in purchasing power of the dollar.

A diminish in the real dollar/euro exchange rate is called as a real appreciation of the dollar beside the euro a increase in purchasing power of the dollar.


Related Discussions:- Exchange rate between the dollar and the euro

Balance of payments accounts, Q. "The balance of payments accounts seldom b...

Q. "The balance of payments accounts seldom balance in practice." Discuss. Answer: True the major reasons are due to the fact that data received or collected from different so

Development by stabilisation & reform-lower income countries, Development t...

Development through stabilisation and reform can be understood as follows     The reasoning here was that the trade and resource transfer could not, by themselves, lift L

Law of demand, Explain the law of demand. Briefly discussed the exception t...

Explain the law of demand. Briefly discussed the exception to the law of demand

Law, The law of reciprocal demand is different from the reciprocal demand c...

The law of reciprocal demand is different from the reciprocal demand curve?

Analysis of an international relations, International Relations (IR) G...

International Relations (IR) Goal : The goal of this writing assignment is for you to hone your skills in identifying accuracy or bias in movies or in "alternative" documentar

Explain mutual exchange rate to float, Q. Explain why it may make sense for...

Q. Explain why it may make sense for the United States, Japan, and Europe to allow their mutual exchange rate to float? Answer: Even though these regions trade amid each other

Interest rate differential according to the ppp theory, Q. Describe and exp...

Q. Describe and explain the relationship between expected inflation rates in two countries and their interest rate differential according to the PPP theory. Answer: Expected p

Journal of health, You will submit a report that shows your investigation o...

You will submit a report that shows your investigation of your focus question.  Your report must be 1500 - 2000 words in length written for the journal Health Australia, a journal

Write Your Message!

Captcha
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