the actual exchange rate is 130 yen/dollar what would you expect to happen to that exchange rate in the future? (Feel free to adapt this question to you own currency and that of your most important trading partner.) 4. Briefly explain why and how money supply‚ inflation and exchange rates are important to your chosen firm and/or industry. 5. Different countries run different exchange rate regimes for their currencies. What is the exchange rate regime for your country? Compared to the alternatives
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the syllabus aims to develop in candidates: 1. an understanding of fundamental economic principles‚ theories and concepts‚ and of the methods of analysis used by an economist; 2. the ability to use the tools of economic reasoning to explain‚ analyse and resolve economic issues‚ and evaluate policy decisions; 3. the habit of reading critically‚ from a variety of sources‚ to gain information about the changing economic activities and policies at the national and international levels;
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Although inflation is generally thought of as an inordinate increase in the general price level‚ throughout the history of economics the causes of inflation and the definition of inflation itself remained as an unresolved issue. There is a general agreement that‚ in the long-run‚ inflation is a monetary phenomenon. In short-run‚ however‚ many other factors could cause inflation that instigates unsettled debate on the causes of inflation. Every school of economists tries to define inflation and explain
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Name ___________Taylor Bravo Assignment 1: Economic Basics (24.0 points) 1. Describe two examples of important things that financial planning skills can help you do‚ and explain why these things are important to you personally. (4-6 sentences. 2.0 points) Financial planning is a very important way to gain the skill to save and invest money. This is something I want to learn because times are rough here at home so I want to do the best I can to save money and responsible invest. Another thing financial
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and conservativeness matter for the inflation performance. We can exemplify this as follows. It is assumed that policy-makers seek to minimize the following loss function‚ which represents the preferences of the society: Eqn 1 Where yt is output‚ y* denotes desired output and x is government’s weight on output stabilization ( > 0). Output is driven by a simplified Lucas supply function: Eqn 2 Where π is actual inflation‚ πe is expected inflation‚ and is a random shock with zero mean
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................................……………… 4 5.V Shaped Recession ……………….......................................……………. 5 6.Low Interest Rates Causing a Medium Term Inflation Risk ……….…….. 6 7.Cost-Push Inflation ………………....................................................…….. 7 8.Rapid growth in Asian markets also threatens rising inflation…….……... 8 9.Unemployment ……………................................……………………….... 8 10. Raising interest rates ………………………………………...................... 8 11.Automatic
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right. A lower currency price means less demand for the currency. The book uses a great example with the country Zimbabwe. In 2002‚ the Zimbabwe government increased its supply of money drastically. This caused currency depreciation and very high inflation for the country’s people. The Zimbabwe Dollar was worth around 2 cents US Dollar. By 2006 the depreciation had grown and the new currency price was 0.00001 or one-thousandth of a US Dollar. This has made the Zimbabwe dollar very repealing compared
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macro-economic policy Explain the main determinants of the level of business activity in the economy and how variations in the level of business activity affect individuals‚ households and businesses © accountingclassroom.com 2008 Student Notes for ACCA F1-Accountant in Business © accountingclassroom.com 2008 Student Notes for ACCA F1-Accountant in Business Session Objectives Explain the impact of economic issues on the individual‚ the household and the business: i) Inflation ii) Unemployment
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Celestino Granados A’s are a Problem In the article “School Penalizes Profs for Grade Inflation” by Brittany Risher‚ she informs the readers of grade inflation in schools across the US‚ and the many points of views of professors related to the reality of grade inflation. Although it has become an issue in many universities‚ only a few schools have taken action to decrease grade inflation. For example‚ Point Park University in Pittsburg decided to penalize professors for giving an above average
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variables like the balance of payments‚ currency exchange rates‚ inflation‚ and employment by increasing or decreasing interest rates and controlling the money supply. Explain the term monetary policy. The monetary policy is designed to attempt to influence variables like the balance of payments‚ currency exchange rates‚ inflation‚ and employment by increasing or decreasing interest rates and controlling the money supply. Explain the term quantitative easing? Quantitative easing is described as
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