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13
what is the difference between the exchange rate in close economy and open economy
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- A 3. Briefly explain below the different theories about the irrelevance/relevance of exchange rates. Think and discuss about all the firms' factors that are affected by movements in exchange rates.(1)Under a flexible exchange rate system, the three endogenous variables in the IS/LM/BP model are output, interest rates and money supply prices, output and unemployment income, output and expenditure output, interest rates and exchange rateWhich of the following is a determinant of exchange rates? Answer 1. A change in consumer preferences 2. A change in productivity 3. A change in real interest rates 4. all of these
- Question Which of the following is a determinant of exchange rates? Answer a. A change in consumer preferences b. A change in productivity c. A change in real interest rates d. all of theseUnder a flexible exchange rate system, the three endogenous variables in the IS/LM/BP model are O income, output and expenditure O output, interest rates and money supply O output, interest rates and exchange rate O prices, output and unemploymentChapter 19 In the foreign exchange market, how does a change in expected future U.S. exchange rate affect the demand for dollars?
- Which of the following is a determinant of exchange rates? a. A change in consumer preferences b. A change in productivity c. A change in real interest rates d. all of theseWhat is the difference between a spot rate anda forward exchange rate?What are three main stages at which could be considered the effect of exchange rates? Discuss them with example.