Save
Busy. Please wait.
Log in with Clever
or
show password
Forgot Password?
Don't have an account?  Sign up 
Sign up using Clever
or
Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account. Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
focusNode
Didn't know it?
click below
 
Knew it?
click below
Don't Know
Remaining cards (0)
Know
0:00
edit
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

ECON 202

Macroeconomics Final Exam: Chapter 18 Open Economy

QuestionAnswer
Exchange Rate: the price at which one currency trade for another
What does the exchange rate affect? relative rices of goods/services/assets in dif. countries, balance and capital flow
Appreciation of exchange rate money gains value, favored in exchange
Depreciation of exchange rate money loses value, not favored in exchange
Floating (flexible) exchange rate: value of currency determined by forces of Supply and Demand, gov. makes no attempt to fix it
Supply of Dollar in the Yen-Dollar Market US imports from Japan, US purchases of Japanese assets
Demand of Dollar in the Yen-Dollar Market Japan Imports from US, Japanese purchases of US assets
What factors affect exchange rate? inflation, economic outlook, political unrest, etc highly sensitive to monetary policy actions
How does exchange rate fluctuate with expansionary monetary policy at home country? lower interest rate at home makes home investment less attractive, demand for home currency decreases, home currency depreciates, export more/ import less/ help boost aggregate demand
How does exchange rate fluctuate with expansionary monetary policy at home country? higher interest rate at home makes home investment more attractive, demand for home currency increases, home currency appreciates, export less/ import more/ reduce aggregate demand
Fixed (pegged) exchange rate: value of currency set by official gov. policy, gov. intervention needed to maintain fixed rate
What are the 3 policy goals of Trilemma of International Macroeconomics? fixed exchange rate, independent monetary policy, free capital mobility
What is Trilemma of International Macroeconomics? Says that all 3 policy goals can not be met at the same time
Why would you choose and fixed exchange rate? What would you have to give up in exchange? eliminate volatility in exchange rate, but have to give up either independent monetary policy or free capital mobility
Why would you choose a floating exchange rate? What would you have to give up in exchange? Can have effective monetary policy, but have to deal with uncertainty in exchange rate
Created by: reganbobo15
Popular Economics sets

 

 



Voices

Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
Retries:
restart all cards