6. Prior to 2009, Zimbabwe experienced several years of declining real GDP. According to an article in the Wall Street Journal, “After Zimbabwe abandoned its currency in favor of the greenback, the economy grew at an annual rate of 6% in 2009 and 9% in 2010." Why would Zimbabwe abandon its own currency to begin using U.S. dollars ("greenbacks")? economy Why would using the U.S. dollar as its currency have enabled the of Zimbabwe to resume growing? What potential problems could using U.S. dollars rather than its own currency pose for the Zimbabwean government?

6. Prior to 2009, Zimbabwe experienced several years of declining real GDP. According to an article in the Wall Street Journal, “After Zimbabwe abandoned its currency in favor of the greenback, the economy grew at an annual rate of 6% in 2009 and 9% in 2010." Why would Zimbabwe abandon its own currency to begin using U.S. dollars ("greenbacks")? economy Why would using the U.S. dollar as its currency have enabled the of Zimbabwe to resume growing? What potential problems could using U.S. dollars rather than its own currency pose for the Zimbabwean government?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter29: Exchange Rates And International Capital Flows

Section: Chapter Questions

Problem 25CTQ: If a countrys currency is expected to appreciate in value, what would you think will be the impact...

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