Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. How A Central Bank Fixes the Exchange Rate?
Answer: The Central bank should always be willing to trade currencies at the fixed exchange rate with the private actors in the foreign exchange market to hold exchange rate constant. Presume central bank fixes exchange rate at E0. Foreign exchange market is in balance when interest parity condition holds - when R the domestic interest rate equals R* the foreign interest rate plus (Ee - E)/E, the expected rate of depreciation of the domestic currency against foreign currency.
E0 is today's balance exchange rate only if:
R = R*
To embrace the domestic interest at R* the central bank's foreign exchange intervention should adjust the money supply so that R* equates aggregate real domestic money demand and the real money supply.
MS/P = L(R*,Y)
When central bank interfere to hold exchange rate fixed it should automatically adjust the domestic money supply thus that money market equilibrium is maintained with R = R*.
conditions for trade unions to claim for higher wages
Q.. "A good cannot be both land- and labor-intensive." Discuss. Answer: In a two good or two factor models for instance the original Heckscher-Ohlin framework and the factor
Q. "The H.O. model remains useful as a way to predict the income distribution effects of trade." Discus s. Answer: The Stolper-Samuelson theorem, one of the basic theorems ari
Q. Countries that are willing to tolerate an unusually high quantity of pollution relative to their supplies of other factors would leads to export "pollution-intensive" goods. D
I need help interpreting an article. PLEASE!
Q. "The line distinguishing between external and internal goals can be fuzzy." Discuss. Answer: True For instance employment target for export industries when export growth m
illustrate the circular flow of income of an open economy and explain the effects of various injections and withdrawal in the circular flow?
what is the current economic situation in the world?
Q. Using the II - XX framework, show using a figure that fiscal policies by themselves cannot bring the economy to both internal and external balances. Answer: Starting at poi
Budget: An estimate of all anticipated revenue and expenditure of the government for the ensuing financial year is called budget. The budget of the state is a document contain
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd