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Explain how an increase in American interest rates will lead to an appreciation of the

Explain how an increase in American interest rates will lead to an appreciation of the U.S. dollar vis-à-vis
the British pound.

2. What are floating exchange rates?

3. a.What action would a government take to keep its exchange rate from rising if demand for its currency
increases?

b.Why would a government want to keep its exchange rate from rising?

4. a.What are foreign exchange reserves?

b.What actions can a government take if it exhausts its foreign exchange reserves?

5. Explain why foreign trade imbalances do not always create problems.

Feb 11 2020 View more View Less

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Explain how an increase in American interest rates will lead to an appreciation of the

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