Which is preferable: a fixed or a flexible exchange rate? Why?
a) Fixed because it provides international monetary stability and forces governments to make adjustments to meet their international demands.
b) Both fixed and flexible exchange rate systems have advantages and disadvantages. It depends on the normative goals for the economy.
c) Flexible because it allows for incremental changes and gives governments flexibility in conducting domestic monetary and fiscal policy.
b) Both fixed and flexible exchange rate systems have advantages and disadvantages. It depends on the normative goals for the economy.
Explanation: Both the systems have their own advantages and faults. The best policy would depend on what kind of economic goal the country is trying to achieve.
Which is preferable: a fixed or a flexible exchange rate? Why? a) Fixed because it provides...
Which of the following contributed to the abandonment of the Bretton Woods Exchange Rate System? Political and economic instability between World War I and World War lI. Expansionary fiscal policy in the United States during the 1960s. Contractionary fiscal policy in the United States during the 1960s. Excessive lending preceding the financial crisis of 2008-2009. QUESTION 8 Which one of the following is a benefit of establishing a fixed exchange rate policy? Monetary policy flexiblity. Price stability during expansionary fiscal...
If Denmark wished to keep its exchange rate with the euro fixed, what monetary policy options are available to lower unemployment in the short run? Denmark has all the options available to it, because domestic monetary policy is conducted inside the nation and has no bearing on its international variables. Traders would realize that any monetary policy actions taken inside a nation would improve economic conditions without affecting international variables. Denmark cannot use any monetary policy that would cause its...
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SPECIAL ARTICLES tole of Monetary Policy C Rangarajan What should be the objectives of monetary policy? Does the objective of price stability conflict with the goal of achieving...
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QUESTION 2 Which of the following can a country implement to protect local industries (e.g. bicycles) according to the video on the deceptive promise of free trade? Border walls local training programs to strengthen local industries protectionist policies such as tarrifs creating a high minimum wage locally governments can't do anything QUESTION 3 Which of the following European countries has a trade surpluse with the US as well as most other European countries...
SECTION A (50) Read the case study below and answer the questions. SHORT RUN STABILIZATION AND LONG RUN COMPETITIVENESS: THE LAVITAN CASE Growth of a young country Latvia – a small, young country on the east coast of the Baltic Sea – has recently earned the title of a ‘‘tiger’’. After gaining its independence from the Soviet Union in 1991, the country embarked upon a challenging road of transitioning from a planned to a market economy. The first decade proved...
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Read the case study below and answer the questions. SHORT RUN STABILIZATION AND LONG RUN COMPETITIVENESS: THE LAVITAN CASE Growth of a young country Latvia - a small, young country on the east coast of the Baltic Sea -has recently earned the title of a "tiger". After gaining its independence from the Soviet Union in 1991, the country embarked upon a challenging road of transitioning from a...
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...
I need Summary of this Paper i dont need long summary i need
What methodology they used , what is the purpose of this paper and
some conclusions and contributes of this paper. I need this for my
Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS
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Budgetary Policy and Economic Growth Errol D'Souza The share of capital expenditures in government expenditures has been slipping and the tax reforms have not yet improved the income...
First, read the article on "The Delphi Method for Graduate Research." ------ Article is posted below Include each of the following in your answer (if applicable – explain in a paragraph) Research problem: what do you want to solve using Delphi? Sample: who will participate and why? (answer in 5 -10 sentences) Round one questionnaire: include 5 hypothetical questions you would like to ask Discuss: what are possible outcomes of the findings from your study? Hint: this is the conclusion....
Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...