The following 6 questions need on the half page each. Required Resources Carbaugh, R. J. (2013). International Economics (14th ed.). Mason, OH: South-Western-Cengage Learning. Indebtedness and Exchange Rates" Please respond to the following:
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The following 6 questions need on the half page each. Required Resources Carbaugh, R. J. (2013). International Economics (14th ed.). Mason, OH: South-Western-Cengage Learning. Indebtedness and Exchange Rates" Please respond to the following: Examine two (2) methods used to determine exchange rates in a free market. Determine which method you believe is most suitable for a free market. Provide a rationale for your response. Watch the video titled, “US hides real debt, in worse shape than Greece” . Video source: RT. (2013, February 9). US hides real debt, in worse shape than Greece.determine two (2) factors why the U.S. is deemed as a debtor nation. Next, compare and contrast two (2) opposing point of views concerning the effects of U.S. indebtedness and specify which point of view you agree with the most. Justify your response. "Exchange Rates Influences and Balance of Payments" Please respond to the following: Give two (2) examples of market fundamentals and market expectations influencing exchange rates. Next, determine the significant factors that attribute to market fundamentals and market expectations influencing exchange rates. Justify your response. Examine three (3) effects that persistent balance-of-payments dis-equilibriums have on an economy. Determine the significance of these effects on an economy’s growth. Provide a rationale your response. "Currency Devaluation and Exchange Rate Systems" Please respond to the following: Go to the Federal Reserve Bank of New York’s Website and read the article titled, “Currency Devaluation and Revaluation,”, examine two (2) effects of currency depreciation (devaluation) on a nation’s trade position. Next, suggest one (2) reasons for the impact of currency depreciation on relative prices, incomes, and purchasing power of money balances. Provide a rationale for your response. Compare and contrast the major advantages and disadvantages of a fixed exchange rate system and a floating exchange rate system. Determine which system you believe is the best for dealing with currency depreciation. Provide a rationale your response.
