« previous next »

Author Question: Money is more mobile geographically now than in the past. Indicate whether the statement is true ... (Read 27 times)

azncindy619

  • Hero Member
  • *****
  • Posts: 562
on: Jun 30, 2018
Money is more mobile geographically now than in the past.
 
  Indicate whether the statement is true or false

Question 2

Explain how a country with a current account surplus is a ripe candidate for currency revaluation.
 
  What will be an ideal response?


dpost18

  • Sr. Member
  • ****
  • Posts: 345
Reply #1 on: Jun 30, 2018
Answer to Question 1

TRUE

Answer to Question 2

If a country like Germany had a current account surplus, it would sell its currency in the foreign exchange market in order to keep it from appreciating. The German central banks would thus find themselves swamped with official reserves, and Germany would face the problem of having its money supply grow uncontrollably, a trend that would most likely drive up the domestic price levels and upset internal balance. Revaluation of the currency would thus be a viable solution to this problem.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

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

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Harddrive of the past Harddrive of the past
Thinking about Past Experiences While Asleep Thinking about Past Experiences While Asleep
The proportion of obese and extremely obese adults in the United States has increased over the past The proportion of obese and extremely obese adults in the United States has increased over the past
Rate of Residential Change, Past Year, in the United States Rate of Residential Change, Past Year, in the United States
American soldiers advance past a burning oil well. As the routed Iraqi army fled Kuwait, it ignited ... American soldiers advance past a burning oil well. As the routed Iraqi army fled Kuwait, it ignited ...
Example of Reconciling a Bank Statement Example of Reconciling a Bank Statement
Video: Stimulus (introduction)

For a complete list of videos, visit our video library