Fully assess the claim that the high and persistent rates on unemployment in parts of the Eurozone suggest it is not an optimal currency area.

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: Under the Trump administration, imports from the EU were tariffed. How did this action change the…

A: Ans. In step 2

Q: If the Chinese nominal exchange rate (foreign currency per Chinese Yuan) does not change, but prices…

A: Given that Chinese nominal exchange rate does not change, but prices rise slower in China than in…

Q: Q27: In 2020, the exchange rate was ¥6.90=$1. Convert the China GDP of ¥101.6 trillion yuan in 2020…

A: In macroeconomics, the production and allocation decisions regarding an entire country or economy…

Q: An exchange rate is best described as? A)The price of goods in terms of a foreign currency B)The…

A: Exchange rate is are of two types: Fixed exchange rate and Flexible exchange rate. Fixed exchange…

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: In the foreign exchange​ market, when the U.S. interest rate​ rises, the supply of dollars​ ________…

A: Answer: Option A  (decreases; rises) Explanation: When the U.S. interest rate rises investors will…

Q: Using data from The Economist's Big Mac Index for 2011, the following table shows the local currency…

A: PPP theory states that exchange rate adjust to equate prices of goods in 2 countries. This means the…

Q: If one country has higher inflation than another, its exchange rate should depreciate. True False

A: Inflation Rate affects the exchange rate. If the inflation rate is higher in one country as compared…

Q: Using data from The Economist's Big Mac index for 2011, the following table shows the local currency…

A: Purchasing Power Parity refers to a popular metric used by macroeconomic analysts that compare…

Q: Who would demand U.S. dollars in the foreign exchange market? U.S. firms and households wishing to…

A: Foreign Exchange Market: The foreign exchange market can be defined as an  institution which…

Q: State reasons why countries renominate their currency

A: The process of voluntarily adjusting the face value of circulating currency is known as…

Q: Please assess the claim that the high and persistent rates of unemployment in parts of the Eurozone…

A: Macroeconomics is a part of economics that deals with production, decision, and allocation…

Q: Thailand is a net-importer. This means that they import more than they export. How does this affect…

A: The exchange rate refers to the rate at which currency of one country can be exchanged with the…

Q: As this edition went to press in mid-2015, concern was mounting that Greece would drop the euro.…

A: The term "Grexit" was coined, referring to a possible drop of the Euro by Greece.

Q: a) Recently, a government official in Europe stated that the European Central Bank needs to  weaken…

A: The euro, the new currency of the European Union, went into effect on January 1, 1999. The euro was…

Q: Is the Eurozone an “optimal” currency area and why, critically evaluate if possible.

A: An “optimal” currency area is characterized as one in which a single currency would create the…

Q: Currently, it takes two Belize dollars to buy a U.S. dollar. If that number were to rise to three,…

A: Appreciation and depreciation of currency of one country cause negatively and positively among…

Q: 26-Which of the following increases the demand for foreign exchange? a. Import of capital to a…

A: The exchange rate determines the rate at which one currency can be traded for another. Therefore, it…

Q: What effect does a high exchange rate have on imports, exports, and that country's production?

A: The rate that measures the value of a nation’s currency in terms of another nation’s currency is…

Q: Is it more beneficial for a country to have a strong national currency or to have a weak national…

A: A national currency is one that a government issues through its central bank or other monetary…

Q: What will happen if the people expect that the value of a currency will increase? a. There will be…

A: The value of a currency is its market value based on its demand and supply in the international…

Q: During the financial crisis that started in 2007, the value of the euro fell dramatically versus the…

A: Here, it is given that the value of European Euro fell drastically in terms of US dollar during the…

Q: When the U.S. dollar appreciates relative to the Japanese yen:   Answers:   A.  Japanese goods…

A: Currency appreciation is an increase in the value of a country's currency with respect to one or…

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: The euro/dollar exchange rate is 1 euro = $1.20. According to the law of one price, a camera that…

A: A swapping scale system or exchange rate is the way a country deals with its cash in the unfamiliar…

Q: When more than one government intervenes to move the value of an exchange rate, this is known as…

A: Answer: Correct option: 3 (Coordinated) Explanation: When more than one government intervenes to…

Q: why is the recovery of global economy, especially the Euro Zone, so important to the South African…

A: Economy can be democratic or it can be under dictatorship or it can be communist. For example United…

Q: What is the link between the foreign exchange market and the real economy

A: The foreign exchange market is the market where countries can buy, sell, exchange, and speculate the…

Q: In 2010, the country of Vesey exported goods worth $312 billion and services worth $198 billion. It…

A: Merchandise Trade deficit is defined as the Total value of goods imported less totàl value of goods…

Q: In April 2002, the price of a Big Mac in the UK was £1.99. Using data from The Economist's Big Mac…

A: Developed in 1986 by The Economist magazine, the Big Mac index uses McDonald's Big Mac prices as a…

Q: Give an example of how a change in the exchange rate alters the relative price of domestic goods in…

A: Exchange rate: - the exchange rate is the rate at which the currency of one country can be exchanged…

Q: According to Mundell optimum currency area theory try to explain if EU is an optimum currency area…

A: Meaning of Optimal Currency Area Theory: The term optimal currency area theory suggests that under…

Q: What are two ways in which monetary policies and tight budgets allow a fixed exchange rate system to…

A: the AA-DD model to portray the impacts of financial, monetary, and exchange rate policy under an…

Q: How is it necessary for a nation with a fixed exchange rate and open financial markets to renounce…

A: The rate about which one currency will be swapped for another is known as the exchange rate. The…

Q: Suppose the exchange rate between the Euro and the Japanese Yen increases from 165 Japanese Yen per…

A: When the value of one currency (X) is increased against another currency (Y), one currency (X) has…

Q: If the Japanese yen appreciates against the U.S. dollar a. Americans should find Japanese goods are…

A: The exchange rate is the price of the currency of one country in terms of another country’s…

Q: The NEWS magazine uses the price of a Mercedes Benz A-class to determine whether a currency is…

A: Purchasing power parity: It refers to measuring the monetary term at estimating costs at various…

Q: The NEWS magazine uses the price of a Mercedes Benz A-class to determine whether a currency is…

A: Purchasing Power Parity(PPP) is the theory of Exchange Rate(ER) which predicts that the market…