ECN 211 L11 exchange rates and BOP_BB

ECN 211 L11 exchange rates and BOP_BB - ECN 211...

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ECN 211 Macroeconomic Principles L11: Exchange rates and the Balance of Payments.
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Exchange rates ……. .The price of one currency in terms _________ Example: £1 sells for $____ Define: “E” is the number of _____________ (dollars ) required to purchase ________ of a foreign currency (British pounds). In the example above E is _____
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Exchange Rates and International Trade Nearly all countries have open economies (and have become ____________ ) Open Economy … an economy that trades goods, services and financial assets with the rest of the world Exchange rates (and their fluctuations) can affect the the flows of exports and imports
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Question… If £1 sells for $2.1 Then how much does one dollar sell for? Answer $1 sells for
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Two main types of Exchange rate Regimes __________ Exchange Rate A country fixes its exchange rate with another country. Will intervene in the foreign exchange market to ensure the exchange rate _____________ __________Exchange rates A countries exchange rate with other countries is
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This note was uploaded on 03/16/2009 for the course ECN 211 taught by Professor Kingston during the Spring '08 term at ASU.

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ECN 211 L11 exchange rates and BOP_BB - ECN 211...

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