Answer to Question #222347 in Macroeconomics for Nana

Question #222347

Is traditional approach adequate model for exchange rate determination

Expert's answer

Traditional approach is adequate since Iexchange rates are based on supply and demand, which are Incorporated in the approach.

Learn more about our help with Assignments: Macroeconomics

Comments

No comments. Be the first!

Leave a comment

Related Questions

1. Answer true or false and explain your answer (1) In the Solow growth model, given the values of A=
2. Answer true or false and explain your answer (1) If an economy can raise its annual real GDP growt
3. Consider an economy with the following aggregate production function: Y = 3K1/3(AL)2/3 Capital
4. Consider an economy in which the labour force grows by 2.7 percent per annum, physical capital grows
5. If a change in government policy leads to a balance of payment deficit and fall in the exchange rate
6. Suppose that an exogeneous disturbance, such as a change in government policy, leads to balance of p
7. Discuss the extent to which the traditional approach is an adequate model of exchange rate determin