If you wanted to assess the competitiveness of a country, would you focus on its spot...
If you wanted to assess the competitiveness of a country, would you focus on its spot exchange rate, its real exchange rate, its effective exchange rate, or some other measure of the country’s currency’s value? Explain.
Homework Answers
We will see real exchange rate as it compares against other currencies and also incorporates price level in that particular country
If real exchange rate increases that means things are more expensive. Imports will look attractive than domestic goods and it will describe competitiveness of the economy
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If you wanted to assess the competitiveness of a country, would
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what should the United States, and other countries, do about
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