Macroeconomic variables, Macroeconomics

Assignment Help:

Furthermore it can be seen that there are interesting relationships between the remaining variables. Firstly, at the 95% significance level it can be seen that interest rates Granger cause exchange rates. This complies with the relevant theory as if domestic interest rates rise there will be a subsequent increase demand for domestic currency. The relationship between inflation and interest rates is also shown in Table 4.3, with both variables Granger causing each other.

In summary, this section has found that oil prices Granger causethree key macroeconomic variables, interest rates, inflation and GDP, therefore we are able to deduce that any unit change in the price of Brent oil, will subsequently impact on these three macroeconomic variables.


Related Discussions:- Macroeconomic variables

plot the aggregate demand, The economy of Mainland has the following aggre...

The economy of Mainland has the following aggregate and aggregate supply schedules:                               Real GDP Demanded                         Real GDP Supplie

Calculate the nominal gdp, Answer the following questions for a hypothetica...

Answer the following questions for a hypothetical economy whose situation in year 1 was as follows: M = $800 billion; long-term annual growth of real GDP = 3%; V = 4. The bankin

National income, how useful is national income statistics for indicating li...

how useful is national income statistics for indicating living standards

Forex, what is largest business in thailand

what is largest business in thailand

International trade and Economic growth, If real GDP was $13.1 trillion in ...

If real GDP was $13.1 trillion in 2013 and $13.3 in 2014, what is the growth rate? (b) How many years would it take for GDP (gross domestic product) to double (using your answer fr

Explain consumer price index, Q. Explain Consumer Price Index? CPI is a...

Q. Explain Consumer Price Index? CPI is a price index of a particular basket known as the CPI-basket. CPI-basket comprise essentially all the servicesand goods consumed in a co

First investment yields a gain, An investor has a choice of 2 investment op...

An investor has a choice of 2 investment opportunities. The first investment yields a gain of $2800 with probability of 0.37, a gain of $1100 with probability of 0.27, and otherwis

Consumption and GDP, At first, it may seem obvious that consumption will re...

At first, it may seem obvious that consumption will rely on Y. If GDP is doubled in real terms over a number of years, government consumption, private consumption and investment wi

Fiscal policy have occurred, What were the key provisions of the economic s...

What were the key provisions of the economic stimulus bill passed by congress in February 2008? What further changes in fiscal policy have occurred since this time?

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