For each of the following, explain whether the DD and AA curves will shift right, left,...

For each of the following, explain whether the DD and AA curves will shift right, left, or remain unchanged. Explain also the effect on the trade balance.

(a) Investors expect an appreciation of the home currency

(b) Foreign income increases

Expert Solution

Factors that are responsible for shifting DD schedule include, Government purchases and Taxes, Investment, Domestic nd foreign price levels, Domestic consumption, etc. This implies that if AD moves up, DD will shift right and vice versa. Factors that are responsible for shifting AA schedule include domestic money supply, Domestic price level, Expected future exchange rate, Foreign interest rate and Shifts in money demand.

a) When investors expect domestic currency appreciation, imports are likely to rise and exports are likely to fall, so there will be downward shift of the AA schedule reflecting a change in the interest parity condition. This will worsen the trade balance as exchange rate falls.

b) This will increase our exports so aggregate demand will shift up. For a given price level, this will shift DD to right. Output will rise and exchange rate will fall. This will worsen the trade balance.

Rahul Sunny answered 2 years ago

Explain the significance of a right or left shift of the oxygen dissociation curve in regard...

Explain the significance of a right or left shift of the oxygen dissociation curve in regard to the loading and unloading of oxygen in the tissues.

Determine whether the events below will cause the aggregate demand curve to shift to the left or to the right.

Determine whether the events below will cause the aggregate demand curve to shift to the left or to the right. Assume the price le remains constant a. Government purchases increase by $2 billion. Aggregate demand shifts (Click to select) b. Real interest rates increase. Aggregate demand shifts (Click to select) c. Taxes increase. Aggregate demand shifts (Click to select) d. Aggregate consumption decreases as consumer confidence falls. Aggregate demand shifts (Click to select) .

5. Consider the following tetrahybrid self-cross: Aa Bb Cc Dd X Aa Bb Cc Dd Calculate...

5. Consider the following tetrahybrid self-cross: Aa Bb Cc Dd X Aa Bb Cc Dd Calculate the probability for each of the following offspring. Show your work. Genotype Aa BB CC Dd Heterozygous for ALL FOUR genes Heterozygous for ANY gene Dominant phenotype for ALL FOUR traits GIVEN that an individual offspring has the dominant phenotype for all four traits, what is the probability that individual is heterozygous for all four genes? GIVEN that an individual offspring has the recessive...

1. Differentiate the shift to the left and shift to the right in differential WBC counting....

1. Differentiate the shift to the left and shift to the right in differential WBC counting. 2. What are the common causes of neutrophilia? 3. List the common disease/s associated with increased monocytes, lymphocytes and basophil.

1. Explain the following. a. Compare the right and left ventricular pressures and right and left...

1. Explain the following. a. Compare the right and left ventricular pressures and right and left ventricular volumes. b. What will happen to cardiac output during exercise? Explain what physiological changes occur that cause this change in cardiac output?

Predict how the equilibrium will shift (to the left, to the right or no change) with...

Predict how the equilibrium will shift (to the left, to the right or no change) with each of the following stresses: a. 2H2 (g) + 2NO (g) → N2 (g) + 2H2O (g) i. Increase [H2] ii. Decrease [NO] iii. Decrease the pressure (by increasing the volume) b. CO (g) + 1/2O2 (g) → CO2 (g) + 283 kJ i. Decrease temperature ii. Increase pressure (by adding He (g)) c. H2O (l) → H + (aq) + OH− (aq) i....

Explain how the market demand curve for a normal good will shift (ie left, right or...

Explain how the market demand curve for a normal good will shift (ie left, right or no shift in each of the following cases? What then will happen to the equilibrium price and quantity? a) The price of a substitute good falls b) The price of a complementary goods falls c) The price of the good decreases d) Tastes shift away from good

Write the Verilog code for a 12-bit shift register with ability to shift left or right,...

Write the Verilog code for a 12-bit shift register with ability to shift left or right, synchronized parallel load, asynchronous reset, and serial output? The register is able to load the 12-bit input value (at the positive edge of the clock) if the load signal is one, shift the value in register one bit to the right (at the positive edge of the clock) if the rss signal is one, shift the value in register one bit to the left(at...

1) Explain the oprerating principle of left-rotating, right rotating shift register by sketching the circuit and...

1) Explain the oprerating principle of left-rotating, right rotating shift register by sketching the circuit and timing diagram for 4-bit register configurations?

These changes will either cause demand to increase (shift right) or decrease (shift left). Use either...

These changes will either cause demand to increase (shift right) or decrease (shift left). Use either word as applicable, for the short answer. 1. If the price of a good increases because the demand for it increases, What would you expect the demand for its complement to do? 2. If the demand for coffee beans increases, then what is likely to happen to the demand for land on which to grow coffee? 3. If advertising expenditures for the good being...

Question