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Class notes Macroeconomic Theory Principles of Microeconomics, ISBN: 9781260326475 $7.99   Add to cart

Class notes

Class notes Macroeconomic Theory Principles of Microeconomics, ISBN: 9781260326475

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This bundle is all in one for the whole course in one term! Principle of Macronomic. This includes all the PowerPoint from the professor and the explained in detail powerpoint (2 PowerPoint versions) that have all 13 chapters of the macroeconomic course. With my own personal class note and summary ...

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  • December 13, 2022
  • 75
  • 2021/2022
  • Class notes
  • Cam
  • Chapter 11
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Exchange Rates and Balance of Payments

,Exchange Rates (ER)
— The rate of which one currency is exchanged for
another

— Flexible ER
— Appreciation and depreciation


— Fixed ER
— Devalue and Revalue

,Purchasing Power Parity
— Theory suggests that in the long run, ER will adjust so
as to equate the purchasing power of each country’s
currency

, Flexible ER
— ER determined by market forces of supply and demand

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