! a) A fixed exchange rate is preferable to aflexible exchange rate becauseaggregate economic policies will be moreeffective.it is less costly to finance balance-of-payments disequilibria.periodic devaluations or revaluations will beunnecessary.None of these.b) The economy is in short-run equilibriumGroup of answer choicesat any point on the IS curve.only at the natural level of GDP.at any point on the LM curve.only at a point that is on both the IS and LMcurves.

Ans: A fixed exchange rate is referred to a system where the exchange rate is fixed by the…

Answered: a) A fixed exchange rate is preferable…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

The GMO Emerging Markets Fund concentrates in investing in the world's emerging stock markets. Mr Liam, an experienced international investment and finance professionanl and is actually interested in the Mexicans stock market. Based on your understanding of the efficient market strategy and hedging, assess the claim that "changes in exchange rates impact contract settlement, business valuation, and cash flows." And kindly advice and recommend Mr Liam on the potential implications for GMO emerging market funds.
The demand for money in the economy sometimes for the motive of transactions, speculation, and precaution. The macroeconomic balance in the presence of money is shown by the curve following. A. How do you read and understand the following curve? B. The relationship between the demand for money for transactions and the demand money for this speculation why the angle is 45°? In graph explain what happens when there are: A. monetary contraction! B. monetary expansion!
if your assessment of the business cycle is more accurate than of your competitors you would chose shares of defensive companies when macroeconomic environment is……..1. Optimistic2. Pessimistic3. Stable4. Between stable and volatile it is commonly assumed that a recession occurs when a GDP declines by twoconsecutives…1. Months2. Quarters3. Years4. Decades
3.At the time of the 2009 Great Financial Crisis, federal policy makers knew that “something” needed to be done to increase the prospects of a healthier economy. In March of this year policy makers felt the same way vis-à-vis the Covid pandemic. Please answer the following questions about that response. a. Assuming that one knows what fractional reserve banking is, explain the FED’s ability to have an economic impact and how that impact did not create huge upward pressures on prices. Your answer must combine the idea of banking reserves, money supply creation, and FED policy regarding reserves. b. Compile (and document) 4 things that the Federal Reserve did to fight the negative consequences of the pandemic. c. For each of the 4 things you identified in part b. explain whether each would impact one of more of the following: Aggregate Demand, Aggregate Supply, long run potential output.
What are the main arguments for the Fed's independence? (Check all that apply.) A. It would be less democratic for elected officials to control monetary policy. B. Monetary policy is too important to be left to politicians, who are not economists and have their own political interests at stake. C. An independent Fed makes a political business cycle less likely. D. Only an independent central bank can deal with a financial crisis without causing an increase in unemployment and inflation.
1.Discuss the attractiveness of Treynor Black methodology to an investor in developed market large and medium cap equities? 2. The stock market falls by 33 percent in one day: is this necessarily inconsistent with the market hypothesis? Explain your reasoning 3. New information hits a company share such that the share price rises from 100 pence to 120 pence and then the share price rises gradually over the following 6 months to 150 pence despite any further news. Is this evidence of market efficiency? Explain your reasoning.
Q1 (b) The Philips curve claims that with economic growth comes inflation, but only in the short run, which in turn should lead to more jobs and less unemployment. Write and apply the concept of Philips curve in the context of developing countries.
Read the article “Statement on Longer-Run Goals and Monetary Policy Strategy” to explain the details of Dual Mandate Policy carried out by the Federal Reserve.The article can be viewed at :https://www.federalreserve.gov/monetarypolicy/files/FOMC_LongerRunGoals.pdf
Exploring the Efficiency of Financial Markets in the Caribbean: An Analysis of EvidenceSupporting and Challenging the Efficient Market Hypothesis. Explore the assertion regarding the state ofFinancial Markets, both globally and within the Caribbean region, evaluating whether they arecharacterized by market perfection or imperfection. Kindly argue in favorthat markets are perfect or that markets are imperfect, allowing for a comprehensive examination ofthe topic. To enhance the analysis of key points in the subject argument, it is imperative to employrelevant finance theories or concepts which either validate or refute the EMH. These concepts serveas a robust framework for understanding financial phenomena. By leveraging established concepts,one can systematically evaluate the evidence presented, thereby bolstering the argument'scredibility and depth.
The following information is provided about an open economy with a government. Use the information to answer the questions that follow: C = 450 + 0.4Y I = 350G = 150X = 70 Z = 35 + 0.1Y T = 0.15YYf = 1550 Calculate the tax revenue to the government of this country when the economy remains in equilibrium
E1 What are the five foundations of economics? What are some other terms that we have discussed that are important for the study of the economics of climate change? Pick at least three (more if you would like) of those terms and describe why they are essential for the study of the economics of climate change.
Suppose that the government decreases spending more than is necessary to close an inflationary gap. What is the MOST likely result? Inflation will increase. The price level will increase. Aggregate output will fall short of potential output. Aggregate output will increase.

SEE MORE QUESTIONS

Recommended textbooks for you

Understanding Business

Management

ISBN:

9781259929434

Author:

William Nickels

Publisher:

McGraw-Hill Education

Management (14th Edition)

Management

ISBN:

9780134527604

Author:

Stephen P. Robbins, Mary A. Coulter

Publisher:

PEARSON

Spreadsheet Modeling & Decision Analysis: A Pract…

Management

ISBN:

9781305947412

Author:

Cliff Ragsdale

Publisher:

Cengage Learning

Understanding Business

Management

ISBN:

9781259929434

Author:

William Nickels

Publisher:

McGraw-Hill Education

Management (14th Edition)

Management

ISBN:

9780134527604

Author:

Stephen P. Robbins, Mary A. Coulter

Publisher:

PEARSON

Spreadsheet Modeling & Decision Analysis: A Pract…

Management

ISBN:

9781305947412

Author:

Cliff Ragsdale

Publisher:

Cengage Learning

Management Information Systems: Managing The Digi…

Management

ISBN:

9780135191798

Author:

Kenneth C. Laudon, Jane P. Laudon

Publisher:

PEARSON

Business Essentials (12th Edition) (What's New in…

Management

ISBN:

9780134728391

Author:

Ronald J. Ebert, Ricky W. Griffin

Publisher:

PEARSON

Fundamentals of Management (10th Edition)

Management

ISBN:

9780134237473

Author:

Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo

Publisher:

PEARSON

SEE MORE TEXTBOOKS