Question: Explain what sort of monetary policy would help to increase the value of the dollar and why it would have this effect. What effects does

Explain what sort of monetary policy would help to increase the value of the dollar and why it would have this effect. What effects does this policy have on unemployment and the merchandise trade balance?

Describe a fiscal policy that would help increase the value of the dollar and why it would have this effect. What effects does this policy have on unemployment and the merchandise trade balance?

Explain what is meant by the law of one price. Also explain why a person or nation could profit if this law does not hold.

Offer three reasons why the law of one price might not hold for some goods.

Explain what is meant by purchasing power parity. Also explain how purchasing power parity relates to the law of one price.

The imaginary nation of Washingtonia prohibits the import of foreign-made pharmaceuticals. What effect does this have on the well-being of people in Washingtonia who consume pharmaceuticals? Who benefits from this trade restriction?

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