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

Author Question: Explain exchange rate crisis. What will be an ideal response?[br][br][b][color=green]Question ... (Read 60 times)

corkyiscool3328

  • Hero Member
  • *****
  • Posts: 539
on: Jun 30, 2018
Explain exchange rate crisis.
 
  What will be an ideal response?

Question 2

Suppose policy makers wish to increase steady state consumption per worker. Explain what must happen to the saving rate to achieve this objective.
 
  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

bulacsom

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Jun 30, 2018
Answer to Question 1

Exchange rate crisis typically start when participants in financial markets believe a currency may soon be devalued. Defending the parity then requires very high interest rates, with the potentially large adverse macroeconomic effects. These adverse effects may force the country to devalue, even if there were no initial plans for such a devaluation.

Answer to Question 2

it depends Whether the saving rate must increase, decrease, or remain constant depends on what the current saving rate is compared to the golden rule saving rate. If s < sg, the saving rate must increase to increase steady state consumption. If s > sg, the opposite must occur.


corkyiscool3328

  • Member
  • Posts: 539
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

Alyson.hiatt@yahoo.com

  • Member
  • Posts: 354
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Green Hairstreak Green Hairstreak
The Green Bee-eater, Merops orientalis, (sometimes Little Green Bee-eater) is a near passerine bird The Green Bee-eater, Merops orientalis, (sometimes Little Green Bee-eater) is a near passerine bird
The frontal lobe (green) bounded by the Sylvian fissure (yellow line) and central sulcus (red line), The frontal lobe (green) bounded by the Sylvian fissure (yellow line) and central sulcus (red line),
Linear dose-response curve Linear dose-response curve
Urine Color Can Signal Dehydration Urine Color Can Signal Dehydration
Economic practice question Economic practice question
Video: Erythropoietin (EPO)

For a complete list of videos, visit our video library