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Your company operates in the MS Delta and imported inputs are used in the final product. The final product is then exported to the rest of the world. The Secretary of the Treasury, Tim Geithner, made the following statement to the Chinese students at Beijing State University some time ago in an attempt tame fears that the US is following an easy monetary policy which is leading to the US dollar losing its power against the currencies of its trading partners: The US is committed to a strong dollar policy! If you believe the Secretary, what is the impact of his stated policy on your business? Suppose you do not think that the statement does have any credibility. What is the expected impact of the resulting policy on your business? In both cases, under what circumstances, would your business may be better off?

 

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M9212086

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