How can long-run values in the real exchange rate change, International Economics

Assignment Help:

Q. How can long-run values in the real exchange rate change?

Answer: A elevate in world relative demand for U.S output origins a long-run real appreciation of the dollar against the euro a fall in the real dollar/euro exchange rate.

A proportional expansion of U.S output causes a long-run real depreciation of the dollar against the euro (a rise in the real dollar/euro exchange rate).


Related Discussions:- How can long-run values in the real exchange rate change

Explain why the polish economy has done better, Q. Contrast the crisis in P...

Q. Contrast the crisis in Poland and Russia. Explain why the Polish economy has done better? Answer: With the end of the 1990s a handful of East European economies including

Dd-aa schedule, Q. Imagine that the economy is at a point on the DD-AA sche...

Q. Imagine that the economy is at a point on the DD-AA schedule that is above both AA and DD and where both the output and asset markets are out of equilibrium. Explain what will h

Hospital manager function, Hospital Manager Function The manager of th...

Hospital Manager Function The manager of the hospital in IMC is responsible for many things: • Follow-up to the orderly conduct of work at the hospital to achieve high qual

Flexible exchange rate regime, under fleible exchange rate regime what are ...

under fleible exchange rate regime what are the consenquences of current account deficit and surplus

Describe the role of offshore banking, Q. Describe the role of offs...

Q. Describe the role of offshore banking and of offshore currency (eurocurrencies) trading. Answer : Both have mushroomed because of increased international trade inc

How much steel could the firm sell domestically, Q . While selling exports...

Q . While selling exports it could also maximize its domestic sales by equating its marginal (opportunity) cost to its marginal revenue of $5. How much steel could the firm sell

Real income or economic welfare of the united states, Q. The Brazilian fir...

Q. The Brazilian firm is charging its foreign (U.S.) customers one half the price it is charging its domestic customers. Is this bad or good for the real income or economic welfa

Terms of trade, what is net barter terms of trade and the effect on its eco...

what is net barter terms of trade and the effect on its economy

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