Domestic policy as it relates to a countrys currency is related to the state of the economy.

Question:

Domestic policy as it relates to a country’s currency is related to the state of the economy.

a. Why didn’t the United States have to implement contractionary policy following World War II even though the value of the dollar was high?

b. Why didn’t a decline in U.S. competitiveness in the 1970s require the United States to run contractionary policy?

c. Why is the trade deficit creating a challenge to domestic policy today?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Macroeconomics

ISBN: 978-1259663048

10th edition

Authors: David C. Colander

See More Books

Question Posted: Dec 05, 2018 07:49 AM

See More Questions

Why is the shelter principle an important legal concept as it relates to negotiable instruments?
The financial community in the United States has become increasingly concerned with the quality of reported company earnings. Required: 1. Define the term earnings quality. 2. Explain the distinction...
The ruler of country Z has a terrible record of human rights violations. He has ordered the slaughter of civilians and has threatened to invade neighboring states. He has been working with known arms...
The P04_18.xlsx file contains a single-table Data Model on a companys sales and a single blank worksheet. The goal is to create a pivot table that shows the ratio of average revenue per transaction...
The data from Exercise 16.59 on the Vickers microhardness (VHN) of the occlusal surfaces among three different materials for making artificial teeth. Use a 5% significance level. In Exercises...
Mrs. Meadows opened a biscuit shop called The Biscuit Bakery. The business was not incorporated. Whenever she ordered supplies, she was careful to sign the contract in the name of the business, not...
Why do projects have a time frame? AppendixLO1
What other strategies might help organizations better utilize and manage selection activities?
Thomas is single and a self-employed architect. During 2019, Thomass income from his business is $150,000. He also pays $2,180 for a medical insurance policy. What is his 2019 self-employment tax...
Mr B aged 52 years, has earned rupees 75,00,000 out of his business. His ex-wife gifted him a car worth rupees 8 lakh. He spent a total of rupees 20 lakh during a family trip. He won a lottery of 16...
Why are economic statistics incomplete measures of quality of life?
If a countrys actual exchange rate is 20 units per dollar and its purchasing power parity exchange rate is 25, is its currency under- or overvalued? Explain your answer.
In the control system, shown in Fig. 5.3 , the value of $k$ has been designed to have the fastest response but without any overshooting. In this condition, determine the settling time of the system...
Concord Timber Company owns 9,000 acres of timberland purchased in 2014 at a cost of $1.470 per acre. At the time of purchase. the land without the timber was valued at $420 per acre. In 2015,...
Foofy computes z-scores for a set of normally distributed exam scores. She obtains a z-score of -3.96 for 8 out of 20 of the students. What do you conclude?
Part 1 Recording Using the financial statements for the hypothetical company - Big Box Retailer-record the transactions for the year to the financial statement. The financial statements may be found...
Finding Standard Deviation from a Frequency Distribution. In Exercises 37-40, refer to the frequency distribution in the given exercise and compute the standard deviation by using the formula below,...
STAR Co. provides paper to smaller companies whose volumes are not large enough to warrant dealing directly with the paper mill. STAR receives 100-feet-wide paper rolls from the mill and cuts the...
A rectangle is bounded by the x-axis and the semicircle (see figure). What length and width should the rectangle have so that its area is a maximum? y = 25x
In exchange for land, the company received a 12-month note on January 1. The face amount of the note is $1,000, and the stated rate of interest is 13%, compounded annually. The 13% rate is equal to...
Suppose the government misjudges the natural rate of unemployment to be much lower than it actually is, and thus undertakes expansionary fiscal and monetary policies to try to achieve the lower rate....
On average, does an increase in taxes raise or lower real GDP? If taxes as a percent of GDP go up 1 percent, by how much does real GDP change? Are the decreases in real GDP caused by tax increases...
The mainstream view of macroeconomic instability emphasizes sticky prices. To answer the following questions, modify the aggregate supply curve in the extended AD-AS model introduced in Chapter 35....
What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond that sells for $967.00? That sells for $1,206.10?
1)Prepare the journal entry to record Tamas Companys issuance of 6,500 shares of $100 par value, 9% cumulative preferred stock for $105 cash per share. 2. Assuming the facts in part 1, if Tamas...
On consolidated financial statements, where does the parents equity in the net income of the subsidiary account appear? A. On the consolidated income statement, as a revenue B. On the consolidated...

Domestic policy as it relates to a countrys currency is related to the state of the economy.

Question:

Step by Step Answer:

a The United States had a strong competitive position and a trade surplus even though ...View the full answer

Macroeconomics

Students also viewed these Business questions