This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If the U.S. interest rate differential falls, then the exchange rate A) does not change. B) ... (Read 58 times)

karateprodigy

  • Hero Member
  • *****
  • Posts: 550
on: Jun 29, 2018
If the U.S. interest rate differential falls, then the exchange rate
 
  A) does not change.
  B) definitely falls.
  C) definitely rises.
  D) falls only if it was the U.S. interest rate that changed.
  E) rises only if it was the foreign interest rate that changed.

Question 2

Explain the relationship(s) between full employment, cyclical unemployment, the natural unemployment rate, and potential GDP.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Expo

  • Sr. Member
  • ****
  • Posts: 351
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

The economy is at full employment when there is no cyclical unemployment. The unemployment rate at full employment is called the natural unemployment rate. Because there is no cyclical unemployment, the natural unemployment rate is comprised of only frictional and structural unemployment. The level of output that the economy would produce if it was at full employment is called potential GDP.


karateprodigy

  • Member
  • Posts: 550
Reply 2 on: Jun 29, 2018
Excellent

adammoses97

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

Risk for falls cont'd Risk for falls cont'd
Ecological sensitivity to climate change Ecological sensitivity to climate change
Cave deposits as an indicator of environmental change Cave deposits as an indicator of environmental change
The ability of a community to cope, adapt to, and mitigate the accelerating impact of climate change The ability of a community to cope, adapt to, and mitigate the accelerating impact of climate change
Hormonal change during ovulation and urinear cycles Hormonal change during ovulation and urinear cycles
Climate change Climate change
Video: Regulation of GFR: autoregulation via tubuloglomerular feedback, neural & hormonal regulation

For a complete list of videos, visit our video library