Macroeconomics
21st Edition
ISBN: 9781259915673
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 21, Problem 2RQ
To determine
The balance on capital and financial accounts.
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QUESTION 9
Honduras is on a fixed exchange rate with the U.S. The exchange rate is 3.0 pesos to the U.S dollar. Domestic credit is 40 and the
money supply is 100. The backing ratio is.
O 0.3
0.4
0.6
O 0.2
O We do not have enough information
QUESTION 10
Honduras forms a currency board. Given the information in 9, how much does it need to increase domestic credit to form a
currency board.
60
40
-60
-50
O We do not have enough information.
Say that in Miami, in Coral Gables, a big mac cost $4.25 and a large fries cost $2.50. In Japan, the total cost of a big mac and
large fries is 81 Yen. The according to purchasing power parity, the exchange rate that equalizes purchasing power of this
basket of goods is
8.5
Š 12
O 6.5
O 10
7. Previously metals are used as trading purposes. Both gold and silver
are used as international means of payment and the exchange rates
among currencies are determined by either their gold or silver
contents. Suppose that the dollar was pegged to gold at S20 per
ounce, the Japanese yen is pegged to gold at 120,000 yen per ounce
and to silver at 8,000 yen per ounce of silver, and the Canadian
dollar is pegged to silver at S$5 per ounce of silver. What would the
exchange rate between the U.S. dollar and Canadian dollar be under
this system?
Chapter 21 Solutions
Macroeconomics
Ch. 21.1 - Prob. 1QQCh. 21.1 - Prob. 2QQCh. 21.1 - Prob. 3QQCh. 21.1 - Prob. 4QQCh. 21.A - Prob. 1ADQCh. 21.A - Prob. 1ARQCh. 21.A - Prob. 1APCh. 21 - Prob. 1DQCh. 21 - Prob. 2DQCh. 21 - Prob. 3DQ
Ch. 21 - Prob. 4DQCh. 21 - Prob. 5DQCh. 21 - Prob. 6DQCh. 21 - Prob. 7DQCh. 21 - Prob. 8DQCh. 21 - Prob. 9DQCh. 21 - Prob. 10DQCh. 21 - Prob. 11DQCh. 21 - Prob. 1RQCh. 21 - Prob. 2RQCh. 21 - Prob. 3RQCh. 21 - Prob. 4RQCh. 21 - Prob. 5RQCh. 21 - Prob. 6RQCh. 21 - Prob. 7RQCh. 21 - Prob. 8RQCh. 21 - Prob. 9RQCh. 21 - Prob. 10RQCh. 21 - Prob. 1PCh. 21 - Prob. 2PCh. 21 - Prob. 3PCh. 21 - Prob. 4PCh. 21 - Prob. 5P
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