1. Discuss the pros and cons of fixed exchange rate systems and flexible exchange rate
2. What happens to domestic income in the AS–AD model when the price of a critical,
imported, intermediate input suddenly rises? (Assume the demand for the input is
3. Low-income nations have a dilemma as to whether to fix or float the currency
exchange rates. There are many factors that affect their decisions and how
effectively they can manage a financial system. Discuss a few of these factors that
contribute to the success of a policy.
4. Historically the gold standard was the anchor for nearly every traded currency.
Explain how the gold standard worked as nations traded domestically and
internationally at fixed exchange rates.
5. Some remedies and preventive measures have been put forth to slow or forestall
currency crises, such as capital controls and intermediate regimes (i.e., fixed or
floating exchange rates). Discuss these measures and comment on whether they
would be effective. Explain why or why not.
Paper#78006 | Written in 29-Jan-2016Price : $27