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Distinguish between variable exchange rate and fixed exchange rate. State which is best for Jamaica. Give reasons for your answer.
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- Discuss how government intervention in the foreign exchange market can effect economic conditions of a countryImports of goods and services is not a source of demand for foreign exchange True/FalseIf purchasing power parity between two countries were to hold, does this mean that the law of one price must necessarily hold for each good? Explain why or why not and provide an example.
- How does a fall in the exchange rate cause an increase in the cost of raw imported materials?Which is suitable exchange rate regime for desirable international business?Under a system of fixed exchange rates, explain how a Caribbean government uses one (1) economic policy to influence its country’s trade balance.
