Menu_02_May_11

Menu_02_May_11 - 1. Foreign exchange market: modified...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
TODAY’S MENU: Monday 02 May 2011 I. BUSINESS A. Practice Problems 1. Chapter 36: 5, 8, 15 2. Chapter 34: 1, 3-5, 8-10, 12, 13, 15 B. Final exam: One week from Thursday (12 May, 10:00 AM-12:00 PM) in Cox Auditorium II. SUBSTANCE A. Exchange Rates: The basics 1. More definitions a. Appreciation b. Depreciation 2. Relationship between exchange rate and import/export prices a. If a country’s currency appreciates, then… i. Exports become more expensive. ii. Imports become cheaper. b. If a country’s currency depreciates, then… i. Exports become cheaper. ii. Imports become more expensive. B. Nominal exchange rate determination: flexible rates
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1. Foreign exchange market: modified supply and demand a. Assume: market for euro 2. Modifications a. Q of what? euro traded/exchanged. b. P of what? euro: $ per €. c. S of € by whom? Europeans seeking U.S. $. d. D for € by whom? Americans seeking €. 3. Examples C. Federal budget deficits and the national debt 1. Opening salvo 2. Definitions a. Budget deficit b. National debt c. Structural and passive deficits d. Real and nominal deficits III. NEXT TIME A. Finish Chapter 34: “Deficits and Debt”...
View Full Document

This note was uploaded on 05/12/2011 for the course ECON 2030 taught by Professor Bong during the Spring '07 term at LSU.

Ask a homework question - tutors are online