Describe how a change in the exchange rate affect the firm. Explain what happened to your price and quanity, How can you profit from future shifts in the exchange rate? How do you predict future changes in the exchange rate?

Q: Write a brief note on the differences between fixed and flexible exchange rate systems by describing…

A: Fixed exchange rate system: Under a fixed exchange rate (or pegged exchange rate) system, the…

Q: Why do we need foreign exchange? Write a brief note on the differences between fixed and flexible…

A: Foreign exchange is a kind of trading of different national currencies or units of account. It is…

Q: Explain the exchange rate overshooting with the help of the diagrams that you drew for part a. Why…

A: Exchange rate overshooting is more volatile in short run as there is an excessive movement in…

Q: Discuss why the demand and/or supply of a currency would shift, and the impact this would have on…

A: The open economy macroeconomics mainly deals with the change in the exchange rates. The change in…

Q: If there is a decrease in the desire of Americans to purchase goods and services from other…

A: The exchange rate is the value of domestic currency required to be paid for obtaining a unit of the…

Q: how would this affect the US foreign exchange market ?

A: Imports: It refers to the goods and services that a country cannot produce due to which the country…

Q: Describe how a change in the exchange rate affected your firm. Explain what happened to your price…

A: Exchange rate is the rate at which one country’s currency is exchanged with another country’s…

Q: What is an exchange rate and why would a government want to maintain a fixed exchange rate?

A: Exchange Rate can be defined as expressing one currency in the terms of another currency. For…

Q: Suppose U.S. interest rates decline compared to the rest of the world. What would be the likely…

A: The interest rates in the international market plays a very important role in relation to the demand…

Q: Assume that Canada has a fixed exchange rate regime. Explain the effect on the foreign exchange…

A: Here, it is given that the Canada has a fixed exchange rate system to make trade in international…

Q: What's the impact on the exchange rate between the US and France if both France and the US increase…

A: The value of a country's currency to the currency of another country or economic zone is known as an…

Q: How will an increase in demand for Mexican pesos affect supply of dollar in a flexible exchange…

A: Let us consider the foreign exchange market, we can think about the increase in demand for Mexican…

Q: Please assist Explain, with the use of a graph, the impact this had on the demand and supply of…

A: When quantity decline, then the demand increments as the supply diminishes. Exchange scale in South…

Q: When the exchange rate for a currency rises and becomes stronger, we say that the currency's value…

A: When a currency appreciates, it means it increased in value relative to a different currency;…

Q: Now assume that the COVID-19 pandemic is over and the vaccine worked out. The economy recovered and…

A: EXCHANGE RATE OVERSHOOTING It is an economic model first discussed by Rudi Dornbusch to explaining…

Q: Considering the inflation and interest differential between the America and Turkey, what is likely…

A: Assumption the data may be fluctuates it is directly taken from google America Policy Interest Rate:…

Q: Explain, with the use of a graph, the impact this had on the  demand and supply of dollars and the…

A: The supply and demand for currencies are the most critical factors in determining exchange rates.…

Q: If the domestic prices for traded goods rose 40 percent over 10 years in China and 25 percent over…

A: A rise in the price of a nation leads to a fall in the value of the currency. This happens because…

Q: If the price of Good A in Japan is 1,000 yen and that in the US is US$5, and the nominal exchange…

A: Real exchange rate  between two currencies is the product of the nominal exchange rate and the…

Q: If the exchange rate is such that $1 equals 5 euros, then the price of a euro is Answer 1. $5 2. $1…

A: The exchange rate is the rate of conversion at which one currency is exchanged with another…

Q: future

A: Exchange rate is the price of one currency being measured in terms of another currency.These rates…

Q: What happens to the exchange rate of a country’s currency when that country experiences high levels…

A: Exchange rate is the rate at which nations currency are exchanged  and the rate is determined by the…

Q: What is an exchange rate? Why would a government want to maintain a fixed exchange rate? If the U.S.…

A: A fixed exchange rate is defined as a policy implemented by the government of the country or the…

Q: Assume that the price of the same pair of shoes is 80 Canadian dollars (CAD) in Canada, 60 euros…

A: a) Real exchange rate between Germany and Canada: Nominal exchange rate between Germany and Canada =…

Q: What is a flexible exchange rate and how does it work?   What is a crawling peg and how does it…

A: The flexible exchange rate refers to the exchange rate of a country set in the international market…

Q: If US has low inflation and Turkey has high inflation, what will happen to the exchange rate between…

A: There is a direct relationship between nominal rate of exchange (NER) and rate of inflation and real…

Q: If the Price of Mexican corn = 50 pesos/bushel Price of American corn = $10/bushel Nominal exchange…

A: Given, Price of Mexican corn = 50 pesos/bushel Price of American corn = $10/bushel Nominal exchange…

Q: Currency traders expect the value of the U.S. dollars to fall by yearend. What effect will this have…

A: Currency traders expect the value of the U.S. dollars to fall by yearend. What effect will this have…

Q: Suppose you are travelling to Europe in one year. The current $ to Euro exchange rate is $1.11. If…

A: In the international market, spot exchange rate refers to the the exchange rate associated with the…

Q: What are the short-run and long-run determinants of exchange rates, under the condition of free…

A: The value attached to a particular nation's currency in comparison/relation with that of another…

Q: Using the foreign exchange market (CAD/EURO), suppose price level in Canada is higher compared to…

A: Exchange rate is the rate at which national currencies are exchanged . And exchange rate is…

Q: What is the current system of exchange rates? explain

A: There are three types of exchange rate: Fixed exchange rate: This implies when the value of one…

Q: Explain the various causes of a fall in the country’s exchange rate.

A: Answer to the question is a follows:

Q: I need to draw a graph showing the foreign exchange market in south africa wherein the majorty of…

A: An increase in the sales of circuits from South Africa to Europe leads to an increase in the exports…