How dd-aa schedule affect in the short run, International Economics

Assignment Help:

Q. Explain how an increase in government spending would affect the DD-AA schedule in the short run.

Answer: A raise in government spending will raise aggregate demand, which will shift the DD to the right. If AA leftovers unchanged the new equilibrium will be at a higher Y and lower E. Ever since E is the nominal exchange rate a lower E is an appreciation of the currency.


Related Discussions:- How dd-aa schedule affect in the short run

Gross barter terms of trade, tion..What is the range of gross barter terms ...

tion..What is the range of gross barter terms of trade ?

ECONOMICS, In the Ricardian analysis, why does each trading partner have an...

In the Ricardian analysis, why does each trading partner have an incentive to produce at an endpoint of its production-possibility frontier? Why are prices of factors of production

Expectations prepared by the heckscher-ohlin model, Q. Why do you suppose ...

Q. Why do you suppose that South-South trade does not conform in volume, but does conform in pattern with expectations prepared by the Heckscher-Ohlin model? Answer: The patt

Postwar worlds key currency, Q. Explain why the dollar of the United ...

Q. Explain why the dollar of the United States became the postwar world's key currency. Answer: 1. The untimely convertibility of the U.S dollar in 1945. 2.

Assignment, Road,railway,air and shlping transportation

Road,railway,air and shlping transportation

Write about masculinity vs. feminity of culture, 1. Write about masculinity...

1. Write about masculinity vs. feminity of culture. 2. Write a note on ‘Organic effect' that affect the decision making process. 3. What is ‘Ad Valoram' rate of duty? 4. What is ‘D

Allegorical rendition of the u.s. political, Q. It is claimed that L. Frank...

Q. It is claimed that L. Frank Baum's classic 1900 children's book, the Wonderful Wizard of Oz, is an allegorical rendition of the U.S. political struggle over gold. Discuss. A

Modern theory of trade, #question.explain me Hecksher OHLIN theory of inter...

#question.explain me Hecksher OHLIN theory of international trade in simple english

Discuss main factors affecting position of the dd schedule, Q. Disc...

Q. Discuss the main factors affecting the position of the DD schedule. Answer: The level of government taxes, demand, and investment and the domestic and foreign price

What can one learn from the following figure, Q. What can one learn from th...

Q. What can one learn from the following figure? Answer: The figure shows the U.S. current account as well as net foreign wealth from 1977 until 1996. It illustrate that a

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