« previous next »

Author Question: How can long run values in the real exchange rate change? What will be an ideal ... (Read 107 times)

nelaaney

  • Hero Member
  • *****
  • Posts: 560
on: Jun 30, 2018
How can long run values in the real exchange rate change?
 
  What will be an ideal response?

Question 2

Which of the following statements is true?
 
  A) Eurobanks are able to create money.
  B) Eurobanks accept deposits but not loans.
  C) Eurobanks are essentially intermediaries.
  D) Both A and C.


Laurenleakan

  • Sr. Member
  • ****
  • Posts: 309
Reply #1 on: Jun 30, 2018
Answer to Question 1

An increase in world relative demand for U.S. output causes a long-run real appreciation of the dollar against the euro (a fall in real dollar/euro exchange rate).
A relative expansion of U.S. output causes a long-run real depreciation of the dollar against the euro (a rise in real dollar/euro exchange rate).

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Effects of growth rate on development. Effects of growth rate on development.
Gas exchange across body surfaces. Gas exchange across body surfaces.
Long-Term Potentiation and Long-Term Depression Long-Term Potentiation and Long-Term Depression
Endochondral ossification of long bone. Endochondral ossification of long bone.
Change in air temperature at various air flow rates for a 7 pass operation Change in air temperature at various air flow rates for a 7 pass operation
Effect of Increasing the Investment Rate on the Steady State Effect of Increasing the Investment Rate on the Steady State
Video: Atrophy

For a complete list of videos, visit our video library