Discuss the main factors affecting the position of the AA ...

[Evvie72]

Discuss the main factors affecting the position of the AA schedule.
 
  What will be an ideal response?

Question 2

The Eurodollar market's early growth was stimulated by the Cold War between the United States and U.S.S.R. Why?
 
  A) Soviets feared the U.S. might confiscate dollars place in American banks if conditions of Cold War were to worsen.
  B) The United States didn't feel safe holding as many dollars in American banks.
  C) The Cold War did not stimulate the Eurodollar market's early growth.
  D) Developing technologies required larger money transfers than central banks could handle.
  E) Soviets developed a new banking system with new allies developed during the tension.

[braelync]

Answer to Question 1

Changes in the domestic money supply; changes in the domestic price level; changes in the expected future exchange rate; changes in the foreign interest rate; and shifts in the aggregate real money demand schedule.

Answer to Question 2

A