A country that attempts to keep its exchange rate fixed, Ask an Expert

Economics

A country that attempts to keep its exchange rate fixed will have a “devaluation” of its currency (or exchange rate) if persistent balance of payments deficits cause it to amass dangerous amounts of foreign exchange reserves.

Would you please explain how the balance of payments deficit causes a country to amass dangerous amounts of foreign exchange?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91844374

Have any Question?Write your Review or question?

Related Questions in Business Economics

A bag contains 15 red marbles and 13 blue marbles two

A bag contains 15 red marbles and 13 blue marbles. Two marbles are randomly drawn without replacement. Find the probability that both marbles are red.

There are 13011 eligible voters in one town in a poll of

There are 13,011 eligible voters in one town. In a poll of 827 eligible voters from this? town, the proportion who say that they plan to vote in the next mayoral election is 0.47. Based on that sample? statistic, what is ...

A monopolist faces a market demand curve given by py 100 y

A monopolist faces a market demand curve given by P(y) = 100 y. Its cost function is c(y) = y 2 + 20. (a) Find its profit - maximizing output level y and the market price p(y ). (b) Calculate its total revenue, total cos ...

Suppose you do not know the population mean fee charged to

Suppose you do not know the population mean fee charged to H&R Block customers last year. Instead, suppose you take a sample of size n=40 and find a sample mean of 175. Assume that the distribution for fees is normally d ...

Data collected in the imaginary economy of petubia reveals

Data collected in the imaginary economy of petubia reveals that when the price of hizzle increased by 25%, the quantity of hizzle decreased by 10%, and the quantity of vort demanded increased by 30%. What is the cross-pr ...

Question parents decided to set aside money for their

Question: Parents decided to set aside money for their child's higher education. The objective is to provide $35,000 in today's dollars after 17 years. Their financial analyst forecasted that the average annual inflation ...

Compare and contrast static and dynamic efficiency applied

Compare and contrast static and dynamic efficiency applied to the fossil fuel market. Compare and contrast the concepts of resource rent and user cost as applied to this market and the potential differences in optimal re ...

A wall street journal article noted that a study by us

A Wall Street Journal article noted that a study by U.S. Congressional Budget Office "estimated raising the minimum wage to $10.10 per hour reduced U.S employment by 500,000 but lift 900,000 Americans out of poverty ". a ...

A drug store is looking into the possibility of installing

A drug store is looking into the possibility of installing a 24/7 automated prescription refill system to increase its projected revenues by $20,000 per year over the next five years. Annual expenses to maintain the syst ...

Suppose another variable x is continuous and its pdf isfx

Suppose another variable X is continuous and its pdf is: f(x)= (x^3 + x^2 - 2/3x + .75) 0 For this question, you may take our word that f(x) is greater than or equal to zero for all values of x in the domain. Prove th ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert