Briefly define the following terms: cost-push inflation, and balance of payments.

Q: Other things the same, as the price level falls, a country’s exchange rate   and interest rates…

A: Price level of certain goods and services demanded in the economy effects the various parameters…

Q: Which of the following is not part of the Current Account of the Balance of Payments? Answers:…

A: Balance of payment account refers to the statement of economic transactions between two countries.…

Q: In the picture below is the full question. The highlighted one is my guess which is wrong. If the…

A: Appreciation of the U.S. dollar means People of the united states can buy more goods and services…

Q: What is the current account?

A: The formula for calculating current account is given below. Current account=Balance of Trade +…

Q: How can the United States government improve the Balance of Payments in the future from 2018 to…

A:

Q: How are both the real interest rate, r, and the real exchange rate, Q, actually determined?

A: The inflation rate is the difference between the actual and nominal interest rates. (The nominal…

Q: What is one of the ways governments can influence exchange rates?

A: the government uses the exchange rate tool to achieve multiple objectives such as full employments,…

Q: What happens to the price level and GDP if there is an increase in the exchange rate?

A: The increase in the exchange rate means appreciation of the domestic currency.

Q: What could be the measures to correct disequilibrium in the balance of payments?

A: Depreciation is a term that refers to a rise in the price of a foreign currency or a decrease in the…

Q: Why does the trade balance and the current account balance track so closely together over time?

A: Trade is the exchange of goods and services between the buyer and seller. When the buyers and…

Q: inflation plays a major role determine whether a currency is appreciating or depreciating true…

A: The depreciation of the domestic currency against any foreign currency is generally the loss of…

Q: Find the current account balance when the trade balance are 2,81,000 and the invisible balance are…

A: Generally in the given question Trade balance are given as = 281000 Invisible balance = 391000…

Q: WHAT IS THE IMPORTANCE OF EXCHANGE RATE IN OUR ECONOMY

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: What happens to the balance of trade if the nominal exchange rate depreciates?

A: According to the Marshall-Lerner condition if the exchange rate of a country depreciates it means…

Q: If a country’s exchange rate depreciates what would be the most likely impact on exports, imports…

A: Depreciation would increase exports.

Q: Detail What is unfavorable balance of trade ?

A: The difference between export and import of the country determines whether the trade is favourable…

Q: Many developing countries, like Mexico, have moderate to high rates of inflation. At the same time,…

A: There is high inflation in many developed countries, such as México. As inflation is high currency…

Q: What does symmetrical adjustment of current account imbalances mean?

A: The Current Account is referred to as a country's exports and imports of goods and services and the…

Q: The balance of trade refers to the balance of imports and exports. True or false

A: Balance of payments is the records of all the transactions of the economy with the rest of the…

Q: 3. Briefly discuss the following statement, explaining what is right or wrong about it: "The average…

A: 3) The statement explains that the current account balance of all countries in the world is in…

Q: Define favourable and non favorable balance of trade

A: When exports are greater than imports,it would be known as favourable balance of trade.

Q: What are the three components of the Balance of Payments? Explain the relationship between the…

A: The balance of payment (BOP) demonstrates the record of all financial proceedings over a period of…

Q: Provide an example of a direct quote of an exchange rate

A: In the foreign exchange market, a direct quote is a rate quotation. It compares the value of one…

Q: Does an expectation of a stronger exchange rate in the future affect the exchange rate in the…

A: The exchange rate refers to trading account that a country charges other country for the imports and…

Q: What are the major issues with regard to trade imbalances for the U.S. economy?

A: The United States is one of the world’s strongest nations which also has an all round accepted…

Q: How reasonable is it for every country to follow policies aimed at increasing net exports?

A: Net exports are the difference between exports and imports of the country.

Q: The term “Balance of Trade” incorporates the measure of which of the following?Choose one answer.…

A: Balance of trade refers to the component in the international trade records where the transactions…

Q: Which of the following exchange rate system is effective to fight inflation? I. Floating exchange…

A: The measure that depicts the value of one currency being measured in terms of another currency in…

Q: Explain very briefly about elasticity approach , national income approach , absorption approach ,…

A: The balance of payments is a system used by countries to keep track of all foreign monetary…

Q: In recent decades, has the US trade balance usually been in sede it, slurp is, or balanced?

A: The trade deficit is a situation in which the goods of other countries are given more priority than…

Q: Balance of trade

A: International commerce enables governments to open new markets for goods and services that would…

Q: The term “Balance of Trade” incorporates the measure of which of the following?Choose one answer.a.…

A: International trade implies the trade that takes place beyond the national boundary. It plays an…

Q: In recent years, China has helped make its currency ____ by ____ U.S. dollars. stronger; buying…

A: The answer is - (a) stronger; buying In recent years, China has helped make its currency…

Q: Which of the following terms refers to a concept that helps to explain why deflation can create a…

A: Deflation refers to tee situation where the price of good decreases as result of decreasing the…

Q: Explain why you agree or disagree with the following statements: A country’s currency will…

A: I agree with the statement that a country's currency will appreciate if it's inflation rate is less…

Q: Define the term balance of trade.

A: Trade is the exchange of goods and services in return for money.

Q: Explain the impact of the changes in the following variables on Current Account balance   a)…

A: Note: As per the guidelines we will answer only three subparts. Please resubmit the question again…

Q: Current Spot Rates. Use the table | containing economic, financial, and business indicators to…

A: * ANSWER :-  * Using the below table from the given question: The relevant data to solve the…

Q: Show, using algebra, that the current account balance is: (i) the difference between saving and…

A: Current account balance is actually under the balance of payment theory. Now this account measures…