Managing The Dollar In The 1980s 1.What does it mean for a currency to be overvalued?In late
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Managing The Dollar In The 1980s
1.What does it mean for a currency to be "overvalued"?In late 1984, what evidence was there that the dollar might have been overvalued?
- How would you explain the dollar's strength prior to 1985?What economic fundamentals appear to have been at work?What risks and opportunities did this strength present to U.S. business interests?
- Was the dollar appropriately priced in late 1986?Again, what evidence would you cite in support of your opinion.
- Is a weak dollar good for the U.S. economy?Why or why not?Why has the US. Trade deficit been slow to respond to the weakened dollar?
- Why and how do exchange rates influence corporate investment decisions? Corporate financing decisions
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