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 93 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
Great answer, keep it coming :)

kalskdjl1212

  • Member
  • Posts: 353
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Acetylcholine receptors and the autonomic nervous system Acetylcholine receptors and the autonomic nervous system
Thyroid System Thyroid System
Blood Flow Through the Cardiorespiratory System Blood Flow Through the Cardiorespiratory System
Relationship of the lymphatic system to the cardiovascular system. Relationship of the lymphatic system to the cardiovascular system.
Apothecary System Apothecary System
The renin–angiotensin–aldosterone system The renin–angiotensin–aldosterone system
Video: Power Supply Polyacrylamide Gel Protein Sample

For a complete list of videos, visit our video library