Macro economics

posted by .

Explain the difference between the real exchange rate and the nominal exchange rate

  • Macro economics -

    sgsgdsg

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economics

    If the velocity of circulation is constant, real GDP is growing at 3 percent a year, the real interest rate is 2 percent a year, and the nominal interest rate is 7 percent a year. a)What is the inflation rate?
  2. Economics

    Suppose that a small open economy begins to use credit cards, starting from monetary equilibrium, allowing households to hold more of their wealth in interest bearing assets. Discuss the effect on real and nominal money supply, foreign-exchange …
  3. econ-exchange rate

    E=exchange rate, H=Home, F=foreign Usually exchange rate are expressed in units of home currency per units of foreign currency. (E H/F) But why for the real exchange rate, it is q F/H ?
  4. eco

    Assume that American rice sells for $100 per bushel, Japanese rice sells for 16,000 yen per bushel, and the nominal exchange rate is 80 yen per dollar. Suppose that rice is the only commodity in the world. What would happen to the …
  5. Banking & Money

    Couple questions here... "Under fixed exchange rates," A. The Free Market is the major determinant of the exchange rate. B. Official government transactions maintained the agreed-upon exchange rate by buying and selling foreign exchange. …
  6. Macroeconomics - SOE

    Statement: The lower our real exchange rate is, the less expensive domestic goods are relative to foreign goods, and the greater the demand is for next exports. I don't get the above statement, please look below to see if there is …
  7. Macroeconomics

    Discuss the differences between a flexible exchange rate and a fixed exchange rate. What measures can the government take to maintain fixed exchange rates?
  8. Economics

    The nominal interest rate is 12 percent per year in Canada and 8 percent per year in the United States. Suppose that the real interest rates are equalized in the two countries and that purchasing-power parity holds. What can you infer …
  9. Macro economics

    How would a fall in U.S. interest rates affect Canadian investment, saving, net foreign investment, and the Canadian real exchange rate
  10. AP Macroeconomics

    3. You buy a certificate of deposit (CD) that pays a nominal rate of 12% annually. You have a tax rate of 25%, so if the interest on this CD is taxable (which it may not be) your after-tax nominal rate is (1 ñ 25%) • 12% = 9%. Since …

More Similar Questions