This topic contains a solution. Click here to go to the answer

Author Question: Assume that the fixed exchange rate system of 1.1 euros = 1 dollar is below the equilibrium exchange ... (Read 68 times)

sheilaspns

  • Hero Member
  • *****
  • Posts: 567
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
Answer to Question 1

A

Answer to Question 2

A




sheilaspns

  • Member
  • Posts: 567
Reply 2 on: Jun 30, 2018
Gracias!


jamesnevil303

  • Member
  • Posts: 337
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

For a complete list of videos, visit our video library