
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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What happens to current account and domestic prices when rand appreciates against the dollar
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- Suppose country A’s goods become more popular with foreign consumers, and country B’s less so. How would this affect each country, assuming that they share a common currency? What are the pros or cons for each country?arrow_forwardIf the US dollar appreciates in value vis-à-vis the NZ dollar, then, Group of answers. Exporters of goods from NZ to the US are worse off since NZ goods are now relatively more expensive. Tourists from NZ in the US are better off since their NZ dollars do not buy as much in the US as they used to. The US students who come to Auckland for an exchange semester are better off. NZ importers of US goods are better off since US goods are now relatively cheaper.arrow_forwardwhat is a speculative attack on a currency. How does it work. Provide a real world example.arrow_forward
- Over the past 20 years, Brazil has experienced relatively high inflation while Japan has experienced relatively low inflation. What do you think has happened to the number of Brazilian reais a person can buy with a Japanese yen?arrow_forward“If a country wants to keep its exchange rate fromchanging, it must give up some control over its monetary policy.” Is this statement true, false, or uncertain?Explain your answerarrow_forwardU S foreign exchange intervention is sometimes done by an Excha U.S. foreign exchange intervention is sometimes done by an Exchange Stabilization Fund, or ESF (a branch of the Treasury Department), which manages a portfolio of U.S. government and foreign currency bonds. An ESF intervention to support the yen, for example, would take the form of a portfolio shift out of dollar and into yen assets. Show that ESF interventions are automatically sterilized and thus do not alter money supplies. How do ESF operations affect the foreign exchange risk premium? U S foreign exchange intervention is sometimes done by an Exchaarrow_forward
- In recent years, China has helped make its currency ____ by ____ U.S. dollars. stronger; buying stronger; selling weaker; buying weaker; sellingarrow_forwardThe third box is the same as the first box(increase or decrease). The fourth box is the same as the second box(demand or supply).arrow_forwardIf the demand for a country's exports falls at the same time that tariffs on imports are raised, will the country's currency tend to appreciate or depreciate in the long run?arrow_forward
- Study the complexity of exchange rate regime choices faced by many emerging market countries today including China.arrow_forwardWhat would be a major disadvantage to dollarization? How would a central bank work in a country that has dollarized?arrow_forwardCan you think of any major disadvantages to dollarization? How would a central bank work in a country that has dollarized?arrow_forward
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