330q9 international econnomics for study more PDF

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international economics 330 tutorial in 2019,it indicates some important things...

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Econ 330 Spring 2020 Manjuri Talukdar

Homework 9 (10 points)

Name:

1. President Trump called China a currency manipulator. In the context of our lectures, what does that mean? What kind of currency manipulation would benefit China? 1 point

2. If the U.S. runs a BOP deficit with U.K., and the exchange rates are flexible, will the $ appreciate or depreciate relative to the pound? Explain. 2 pts

3. Suppose the USA and the UK are the only two countries in the world. There exists an excess demand for US dollars in the foreign exchange market. What would that mean in terms of BOP equilibrium? 2 pts

4. Explain why a BOP disequilibrium can be identified with disequilibrium in the foreign exchange market. Use a graph. 3 points

5. Describe how attempts to correct BOP disequilibrium could compromise full

employment equilibrium under a fixed exchange rate regime.

2 points...