Will a flexible exchange rate bring the imports of goods and services into balance with the exports

Question:

Will a flexible exchange rate bring the imports of goods and services into balance with the exports of goods and services? Why or why not?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Macroeconomics Private And Public Choice

ISBN: 9780357134009

17th Edition

Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

See More Books

Question Posted: Oct 08, 2023 01:19 AM

See More Questions

Question 1 There are the three reasons why aggregate demand is downward slope: real wealth effect, interest rate effect, exchange rate effect. In a case scenario the market saw an increase in...
Multiple Choice Questions: 1. Which of the following would be recorded as a credit in the U.S. balance-of-payments accounts? a. The purchase of a German business by a U.S. investor b. The import of...
MCQ questions: 1. An increase in oil prices, such as the oil shocks in the 70s, lead to _______ thereby causing ________ a movement along the AS curve; cost-push inflation a leftward shift in the AS...
Hooghly Products manufactures a silicone paste wax that goes through three processing departments- Cracking, Blending, and Packing. All raw materials are introduced at the start of work in the...
The following data were extracted from the income statement of Mountain Sports Inc.: a. Determine for each year (1) The inventory turnover (2) The number of days sales in inventory. Round to nearest...
What are prepaid expenses? Give four examples.
What is the meaning of separation of powers?
The Village of Delmar is preparing its government- wide statement of activities for the year ended December 31, 2013. Analysis of the data accumulated thus far shows the following expenses for each...
Dorothy & George Company is planning to acquire a new machine at a total cost of $ 5 2 , 4 0 0 . The machine s estimated life is 6 years and its estimated salvage value is $ 5 0 0 . The company...
Suppose the exchange rate between the United States and Mexico freely fluctuates in the open market. Indicate whether each of the following would cause the dollar to appreciate or depreciate relative...
How will the purchases of items from foreigners compare with the sales of items to foreigners when the foreign exchange market is in equilibrium? Explain.
How does fluorescent and HID lighting affect telecommunication signals?
For the function given by f(t)= t on the interval -2
Provide your calculations of the operating cash flows in a table or by attaching the MS Excel spreadsheet. Explain the total amount of net cash provided by operating activities in 2021 and 2020 by...
The hypothetical city of Hurstville is trying to decide how many city beautification projects should be approved each year. These projects involve planting gardens, commissioning murals, and building...
i local n_local m_local local_var m Draw a stack frame. Write the variable name and enter the hex value of each stack slot (if the value is known) after the completing following instructions. n equ...
A manufacturing unit of a company produces at present 2 products namely A and B. The sales revenue and cost data are as follows: D Materials (INR Per Unit) D Labour (INR Per Unit) D. Expenses (INR...
The Red Wine Company manufactures wine coolers. The company began operations several years ago and has experienced rapid sales growth. The company is organized by business function, with...
For a Poisson process of rate , the Bernoulli arrival approximation assumes that in any very small interval of length , there is either 0 arrivals with probability 1- or 1 arrival with probability ....
The table below shows the prices in Canada of cotton towels produced in the United States, Canada, and Malaysia. Assume that all cotton towels are identical. a. Suppose Canada imposes a 20 percent...
The table below shows the prices in Canada of cotton towels produced in the United States, Canada, and Malaysia. Assume that all cotton towels are identical. a. Suppose Canada imposes a 20 percent...
Superstores like Costco and Sams Club serves as wholesalers to businesses but also target consumers who are willing to pay a fixed fee in order to get access to the lower wholesale prices offered in...
Today, white privilege is often described through the lens of Peggy McIntosh's groundbreaking essay. White Privilege: Unpacking the Invisible Knapsack." Originally published in 1988, the essay helps...
discuss the role of cultural hybridity and transculturation in the formation of new cultural identities and practices, particularly in contexts characterized by migration, diaspora, and intercultural...
Why should the law not permit a contracting party unilaterally to relieve itself of liability by delegating its duty of performance to a third person? Explain

Will a flexible exchange rate bring the imports of goods and services into balance with the exports

Question:

Step by Step Answer:

A flexible exchange rate system alone does not guarantee that the imports of goods and services will automatically come into balance with the exports ...View the full answer

Macroeconomics Private And Public Choice

Students also viewed these Business questions