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 143 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
Thanks for the timely response, appreciate it

skipfourms123

  • Member
  • Posts: 343
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

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 most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

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?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Is there anything in life that is permanent, or is the world constantly changing? Is there anything in life that is permanent, or is the world constantly changing?
A Woman’s Changing World A Woman’s Changing World
Changing Patterns of Climate Changing Patterns of Climate
An electron is accelerated from rest through a potential difference. After acceleration the ... An electron is accelerated from rest through a potential difference. After acceleration the ...
Key foreign policy agencies Key foreign policy agencies
Animated Changes in the ovary and uterus correlated with changing hormone levels. We start with the Animated Changes in the ovary and uterus correlated with changing hormone levels. We start with the
Video: Introduction to Heart Attacks

For a complete list of videos, visit our video library