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

Author Question: Assume that the fixed exchange rate system of 1.1 euros = 1 dollar is below the equilibrium exchange ... (Read 66 times)

sheilaspns

  • Hero Member
  • *****
  • Posts: 567
on: Jun 30, 2018
Assume that the fixed exchange rate system of 1.1 euros = 1 dollar is below the equilibrium exchange rate of 1.3 euros = 1 dollar in a flexible exchange rate system. Then, at the fixed exchange rate, the dollar would be
 
  a. undervalued and the euro would be overvalued.
  b. overvalued and the euro would be undervalued.
  c. revalued and the euro would be devalued.
  d. depreciated and the euro would be appreciated.

Question 2

In the classical and monetarist aggregate demand curves:
 
  a. money is the primary factor driving changes in aggregate demand.
  b. taxes can never shift aggregate demand.
  c. government spending can never shift aggregate demand.
  d. changes in aggregate demand drive most recessions.
  e. both a and d.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

chloejackso

  • Sr. Member
  • ****
  • Posts: 316
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

A


sheilaspns

  • Member
  • Posts: 567
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

jackie

  • Member
  • Posts: 324
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Human Visual System Human Visual System
Sagittal section of the female pelvis, showing organs of the reproductive system. Sagittal section of the female pelvis, showing organs of the reproductive system.
Static Stability & Environmental Lapse Rate Static Stability & Environmental Lapse Rate
Endocrine System Endocrine System
Roof Structural System Roof Structural System
The two circuits of the human cardiovascular system The two circuits of the human cardiovascular system
Video: ribosome

For a complete list of videos, visit our video library