econ

Exporters suffer when their home currency depreciates and prosper when it appreciates. True or false? and why?

The real exchange rate between Canada and U.S. must be unity if LOOP is found held for all the common goods that are consumed in both countries. True or false?

I got this long question i am not sure how to do. The current dollar-pound exchange rate is $2 per pound. A U.S. basket that costs $100 would cost $120 in the United Kingdom. For the next year, the Fed is predicted to keep U.S. inflation at 2% and the ban...

I asked this question couple days before. Exporters suffer when their home currency depreciates and prosper when it appreciates. True or false? and why? Can I explain it this way, it is false because, let say the exchange rate is 1 $/euro, and then dollar...

The real exchange rate between Canada and U.S. must be unity if LOOP is found held for all the common goods that are consumed in both countries. True or False? Economyst, last time you said it is false, but if LOOP holds for each good in the basket, it wi...

so the answer is false?

so the arbitrage condition should be E pounds/euros=3/4. ( i got this by multiplying 1/2 and 3/2 ) Is this correct?

This is the covergence to absolute PPP part from my text: The evidence suggests that PPP works better in the long run but not in the short run. In reality, research shows that price differences, the deviations from PPP, can be large and persistent in the...

but did ms. sue imply that the answer is true?