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econ
Questions and answers by visitors named
econ
Questions (9)
True of False?
E=exchange rate Suppose E $/euros = 3/2 and E $/pounds = 2, and there is no trade friction, the no arbitrage
3 answers
460 views
Exporters suffer when their home currency depreciates and prosper when it appreciates. True or false? and why?
6 answers
441 views
The real exchange rate between Canada and U.S. must be unity if LOOP is found held for all the
common goods that are consumed in
2 answers
1,043 views
I got this long question i am not sure how to do.
The current dollar-pound exchange rate is $2 per pound. A U.S. basket that
4 answers
2,557 views
E=exchange rate, H=Home, F=foreign
Usually exchange rate are expressed in units of home currency per units of foreign currency.
1 answer
515 views
I asked this question couple days before.
Exporters suffer when their home currency depreciates and prosper when it appreciates.
3 answers
536 views
The real exchange rate between Canada and U.S. must be unity if LOOP is found held for all the common goods that are consumed in
1 answer
472 views
40-2q+.03q^2=40-q-.01q^2
.04q=1 q=25 this is what i keep getting but I am suppose to be getting 50 what am I doing wrong?
1 answer
335 views
(100 – 2Px + 1Py) (Px -20)
Now, take the derivative of the above with respect to Px to get the following first order condition
1 answer
403 views
Answers (4)
but did ms. sue imply that the answer is true?
This is the covergence to absolute PPP part from my text: The evidence suggests that PPP works better in the long run but not in the short run. In reality, research shows that price differences, the deviations from PPP, can be large and persistent in the
so the arbitrage condition should be E pounds/euros=3/4. ( i got this by multiplying 1/2 and 3/2 ) Is this correct?
so the answer is false?