What is the impact of expansionary fiscal policy on the exchange rate? Explain the process through which expansionary fiscal policy affects the exchange rate
A fiscal expansion normally makes the exchange rate appreciate. A fiscal expansion pushes up interest rates. At higher interest rates, domestic securities become more attractive to foreign investors, who go to the foreign-exchange markets to buy domestic currencies with which to purchase them. This buying pressure drives up the value of the domestic currency.
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Use the following table to answer this question, which provides information on the production of a product that requires one variable input.InputTotal Product0015220332442550655758858956Marginal product is zero when the total product is
A. 58. B. 5. C. 0. D. 56.
GDP consistently measures the output of goods and services in all countries.
Answer the following statement true (T) or false (F)
If the price of a slice of pizza rises from $2.50 to $3, and quantity demanded falls from 10,000 slices to 7,400 slices, calculate the arc price elasticity
A) -1.92 B) -1.64 C) -4 D) -2
In the early 1960s, monetary theory rather than Keynesian theory dominated economics
a. True b. False Indicate whether the statement is true or false