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INSTRUCTIONS YOUR GRADE DEPENDS ON YOUR CONVICTION, CORRECTNESS, ELABORATION AND ELUCIDATION OF YOUR ANSWERS. EACH COUNTS 17 POINTS. YOU SHOULD WRITE ABOUT ONE PAGE SINGLE

INSTRUCTIONS

  1. YOUR GRADE DEPENDS ON YOUR CONVICTION, CORRECTNESS, ELABORATION AND ELUCIDATION OF YOUR ANSWERS.
  2. EACH COUNTS 17 POINTS.
  3. YOU SHOULD WRITE ABOUT ONE PAGE SINGLE SPACED PER QUESTION

Explicate how the exchange rates, in a flexible exchange rate regime and in a fixed exchange rate world, are affected by deficits and surpluses.

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