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

Author Question: What is the difference between an expenditure-changing policy and an expenditure-switching policy? ... (Read 77 times)

Sportsfan2111

  • Hero Member
  • *****
  • Posts: 585
on: Jun 30, 2018
What is the difference between an expenditure-changing policy and an expenditure-switching policy?
 
  What will be an ideal response?

Question 2

Compare currency board to conventional fixed exchange rate.
 
  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

Ptupou85

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Jun 30, 2018
Answer to Question 1

An expenditure-changing policy alters the level of the economy's total demand for goods and services. An expenditure-switching policy, on the other hand, induces an exchange rate adjustment and thus changes the direction of demand, shifting it between domestic output and imports.

Answer to Question 2

Currency board may not acquire domestic assets and thus cannot lend currency freely to domestic banks in time of financial crisis. Also, limit government ability to surprise the market and have real devaluation.


Sportsfan2111

  • Member
  • Posts: 585
Reply 2 on: Jun 30, 2018
:D TYSM

covalentbond

  • Member
  • Posts: 336
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Like most world-changing inventions, the printing press of fifteenth-century Europe took advantage o Like most world-changing inventions, the printing press of fifteenth-century Europe took advantage o
Changing a Sterile Dressing Changing a Sterile Dressing
For some Americans, religion is an “easy-going, makes-little-difference” matter, as expressed in ... For some Americans, religion is an “easy-going, makes-little-difference” matter, as expressed in ...
A typical two-wire coil-on-plug ignition system showing the triggering and the switching being ... A typical two-wire coil-on-plug ignition system showing the triggering and the switching being ...
Environmental policy Environmental policy
Changing Patterns of Climate:Hurricanes and the Atlantic Multidecadal Oscillation Changing Patterns of Climate:Hurricanes and the Atlantic Multidecadal Oscillation
Video: Neurosynapse Animation

For a complete list of videos, visit our video library