The longer the "pass-through" period following a devaluation, the faster the desirable balance of trade effects of a devaluation will appear on quantities traded is it True or False and why ?

Q: Explain why many industrialized countries do not often intervene in the foreign exchange market

A: The industrialized countries are countries that have a fully developed system of industries i.e. has…

Q: Identify any two reasons that US dollars would be demanded in South Africa

A: There can be many reasons that the foreign currency would be demanded in a country such as for…

Q: Define ‘Customs Union’. What are the expected economic impacts of the establishment of the GCC…

A: Answer: Customs Union is an advanced form of the trade bloc, it is formed between two or more…

Q: What is the key difference that determines whether an international transaction appears in the…

A: The difference between all money moving into a country in a given period of time (e.g., a quarter or…

Q: Which of the following would cause exports to rise?        A) A depreciation of the exchange rate…

A: A weaker domestic currency invigorates products and makes imports more costly; on the other hand,…

Q: Nigeria has a positive trade balance of $10 billion. If it has a negative balance of services of $8…

A: Balance of trade is the difference between the country's exports of goods and services and the…

Q: Is monetary approach an automatic adjustment mechanism to correct a deficit in the balance of…

A: The exchange rate is the rate at which the currencies of two countries can be traded for each other.…

Q: How can exchange-rate targets lead to a speculativeattack on a currency?

A: The exchange rate targeting is the method by which a central bank intervenes in the market in order…

Q: Nigeria has a positive trade balance of $10 billion. If it has a negative balance of services of $8…

A: Balance of trade is otherwise called net export, trade balance, or global trade balance.

Q: If you observed a country with a rapidly growing trade surplus over a period of a year or so,would…

A: While trade deficit is not always harmful for country growth, thus, rapidly growing country in trade…

Q: If the Federal Reserve raises interest rates, what would happen to thepeso-dollar exchange rate in…

A: The rise in the interest rate of a country makes its investment attractive. Thus, a rise in the…

Q: uctions: If you are entering a negative number, be sure to include a negative (-) sign. nd…

A: We have, Export of goods = $21 billions Import of goods = $25 billions Export of services =  $15…

Q: What will happen if the price of US dollars declines considerably against the Japanese yen then: a)…

A: Exchange rate is the rate of exchange of two currencies. It means that it is the rate at which one…

Q: Define each of the following terms: c. Trade deficit; devaluation; revaluation

A: Trade deficit: Trade deficit can be defined as a situation where country's import exceeds its…

Q: How will currency appreciation make imports cheaper and exports more expensive, causing the trade…

A: Increasing the value of country’s currency against other country’s currency is termed as…

Q: Would it be accurate to think of a fixed exchange rate as a simultaneous price ceiling and price…

A: No, it would not be accurate to think of a fixed exchange rate as a simultaneous price ceiling and…

Q: EXPLAIN IN DETAIL GENERAL ASPECTS OF BALANCE OF TRADE.

A: The Balance of trade (BOT) can be defined as the difference between the value of a country's imports…

Q: Solve the attachment

A: Devaluation is a deliberate reduction in the exchange rate of a country's currency, reducing the…

Q: If the demand for a country’s exports falls at the same timethat tariffs on imports are raised, will…

A: Currency appreciation means when the value of a currency increases relative to the value of the…

Q: Short-run pressures on market exchange rates result mainly from gradual changes in  flows of…

A: This statement is true. It is because the valuation of the exchange rate is determined by the cost…

Q: Companies that reduce their margins on export products in the face of appreciation of their home…

A: As a result of appreciation exports are going to decline. If they reduce their profit margin , they…

Q: How do changes in exchange rates affect international trade?

A: The exchange rate is determined by the demand(DD) & supply(SS) of currency. It is an important…

Q: -The longer the "pass-through" period following a devaluation, the faster the desirable balance of…

A: The given statement is false.

Q: ct international trade

A: The currency's relative volatility and valuations tend to have significant repercussions on the…

Q: Give reasons, supported with clear explanations, why countries opt for a floating exchange rate?

A: The exchange rate is the rate at which domestic currency is exchanged with foreign currency in the…

Q: chasing power parity may not fully explain exchange rate

A: Option (c). When a fresh student starts looking for job, he enter labor force and is unemployed.…

Q: Suppose that soon after Denmark pegs to the euro, the Eurozone benefits from a favorable shift in…

A: It refers to the value of a country's currency in relation to another country's currency or an…

Q: Fixed Exchange rate is too expensive to be implemented," do you agree? Explain.

A: A fixed exchange rate, sometimes known as a pegged exchange rate, is an exchange rate regime in…