Describe how three macroeconomic fundamentals affect exchange rates
What will be an ideal response?
According to the monetary exchange rate model, the domestic currency weakens (strengthens) if the domestic (foreign) money supply increases today or if news arrives that leads people to believe that the future domestic (foreign) money supply will increase. The domestic currency also weakens if domestic real income falls, if foreign real income rises, or if news arrives that causes people to expect lower domestic real growth or faster foreign real growth. Finally, according to the equilibrium theory regarding the real exchange rate and the current account, an increase in government spending or a decrease in taxes that causes a budget deficit should increase the real exchange rate (and hence likely also the nominal exchange rate). This is because an increase in government spending increases aggregate demand in the economy, which causes the real interest rate to rise. The rise in the interest rate reduces investment and encourages private saving.
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What is the problem with a goal that lacks the quality of being “aligned”?
a. It will not match the organization’s overall strategies. b. It will not be realistic based on what the manager has assigned. c. It will not be aligned with ethical behavior. d. It will be reachable with incremental gain.
Answer the following statement(s) true (T) or false (F)
1. Product strategy is one of the sales and operations planning strategies. 2. Cost is a nonlinear function of unit cost and the number is an assumption regarding the application of the trial-and-error approach to developing a sales and operations. 3. Involving supply chain partners in the sales and operations planning process increases the level of uncertainty in the supply chain. 4. Developing a global sales and operations plan is due to a lower product demand volatility caused by swings in demand. 5. Global sales and operations plan must be managed separately through the respective functions (manufacturing, sales, finance).
The linear programming model of the production mix problem only includes constraints of the less than or equal form
Indicate whether the statement is true or false
Upward-sloping yield curves result from higher future inflation expectations, lender preferences for shorter maturity loans, and greater supply of short-term as opposed to long-term loans relative to their respective demand
Indicate whether the statement is true or false