Top Posters
Since Sunday
r
5
m
5
h
5
r
5
t
5
B
5
P
5
s
5
m
5
c
5
c
4
4
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
Chako Chako
wrote...
Go to Answer
Posts: 2948
Rep: 22 2
8 years ago
This question concerns the mechanism of a reserve currency standard.
Two countries, X and Y, have two currencies, x and y, fixed to the reserve currency, the U.S. dollar. Suppose the exchange rate between x and the U.S. dollar is 3x per dollar. Suppose the exchange rate between y and the U.S. dollar is 5y per dollar. Explain (using numbers) the mechanism if the x-y exchange rate was 0.8 x per y.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
Read 199 times
3 Replies
Replies
Answer verified by a subject expert
machukianmachukian
wrote...
#1
Top Poster
Posts: 2946
Rep: 36 0
8 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

Chako Author
wrote...
#2
8 years ago
Makes a lot of sense, and you're right.. I appreciate the input
wrote...
#3
8 years ago
Thanks for the feedback, I'm sure others will appreciate it too
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  924 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 1435
  
 108
  
 253
Your Opinion
Who will win the 2024 president election?
Votes: 7
Closes: November 4
Previous poll results: What's your favorite coffee beverage?