The extent of exchange rate overshooting in response to a permanent increase in money supply is smaller
(a) the more sensitive is money demand to income changes.
(b) the more sensitive is money demand to interest rate changes.
(c) the less sensitive is money demand to interest rate changes.
(d) the bigger is the short run response of prices to the change in money supply. (e) the higher is the foreign interest rate

Answers

Answer 1

(b) the more sensitive money demand to interest rate changes. Exchange rate overshooting is less extensive when money demand is more sensitive to interest rate changes because it leads to faster adjustments in the money market, thus reducing the magnitude of exchange rate fluctuations.

Exchange rate overshooting occurs when the initial impact of a shock on exchange rates is larger than its long-term effect. In the case of a permanent increase in money supply, the exchange rate initially depreciates more than its long-term effect. The sensitivity of money demand to income changes or interest rate changes affects the speed and magnitude of the adjustment process.

If money demand is more sensitive to income changes, then the exchange rate will adjust more quickly and the overshooting effect will be smaller. On the other hand, if money demand is more sensitive to interest rate changes, the adjustment process will be slower and the overshooting effect will be larger.

Moreover, the short-run response of prices to the change in money supply also affects the extent of exchange rate overshooting. If prices adjust quickly in response to the increase in money supply, then the overshooting effect will be smaller.

Finally, the higher the foreign interest rate, the greater the demand for foreign currency and the smaller the exchange rate overshooting effect.

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Related Questions

Why does life have to be hard?

Answers

Answer:

Life is hard because life needs to know if you're willing to fight. Willing to be strong when life is 'hard'. The second that you prove yourself with one challenge, another challenge show's up. Don't let life get you down. Be grateful for all you have. Live as if it's your last day. :>

Explanation:

Answer:

Because thats just how it is. There are the good times and the bad times. When life smacks you down, you need to get up and say "you hit like a b*tch". But it gets better. With age comes gratitude, perspective, and the ability to problem-solve for ourselves. With age we accrue more experiences, more self-awareness, and more successfully navigated pain and heartbreak. But life doesn't get better because you're older, you just get better at dealing with how life works. Life is painful, and we have got the answer to one of its parts. Now, it's time to understand another one:- Emotional Pain. The reason we feel emotional pain is because we don't accept the situation. We want something else out of our current situation. We suffer because of the idea that life was meant to be painless and things should go smoothly as it is. You don't expect life to be fair to you because you are a good person or you work so hard. Life has its own rules, it's complicated and not the same for everyone.

Why do people enter an apprenticeship rather then attend college?

Answers

    And here are three great reasons to choose an apprenticeship instead: 1. You need to start earning a livable wage.  On average, college costs $23,600 per year — and if you don't finish with a degree, you still have to pay for the classes you took.

    Benefits of Apprenticeship

Customized training that meets industry standards, tailored to the specific needs of businesses, resulting in highly-skilled employees.

Increased knowledge transfer through on-the-job learning from an experienced mentor, combined with education courses to support work-based learning.

    Apprenticeships are an excellent way to gain access to a company or a sector you want to work in, and if you do a great job and become a valued member of the team, it will put you in a strong position when there are permanent job opportunities. Learn transferable skills

    If you're someone who really wants to embrace the student experience and explore your course subject in-depth, going to university might be for you. If you enjoy hands-on learning, want to get paid for on-the-job training and get a degree without tuition fees, then an apprenticeship could be a good option.

     Though they receive valuable training, individuals often endure both pros and cons of apprenticeships. You might want to research the pros and cons tho.

    A person is eligible to undertake an apprenticeship or traineeship in NSW if they are: an Australian citizen, or. a foreign national with permanent residency, or. a New Zealand passport holder who has been a resident in Australia for more than six months.

    I HOPE THIS HELPS AND MAYBE I COULD GET  BRAINLIEST <3

Answer:

So you dont have to go to college?

Explanation:

why would you put money into a saving account

Answers

Answer:

You'd put money into a bank account to save it

Explanation:

you'd want to save it so you don't spend it yet.

Hope this helps! :)

What is information that CANNOT be measured and expressed in numbers? Question 1 options: Personal Information Target Market Data Qualitative data Quantitative data

Answers

Answer:

Qualitative data

Explanation:

Qualitative data is one that is used to characterise and categorise attributed of a population, as such it does not involve the use of numbers.

For example sex, state of origin, citizenship, name, and so on.

On the other hand the other options can be expressed as numbers. That is Personal Information, Target Market Data, and Quantitative data.

Basically qualitative data is descriptive rather than quantitative

I
In which book of original entry would you enter the following?
(a) Sales invoice

(b) Debit note-

(c) Cash sale-

(d) Purchase invoice-

(e) Credit note-​

Answers

Try e I THINK ITS E :D

Which step in the product development process involves announcing a new
product on social media?

A. Post-launch review
B. Idea screening
C. Content development and testing
D. Commercialization and launch

Answers

Answer:

D

Explanation:

announcing the product takes place in the commercialization and launch of the product

In the product development process involves announcing a new product on social media the major step was Commercialization and launch. The correct option is (D).

What do you mean by the product development?

Product development, often known as new product management, is the process of conceptualizing, designing, developing, and selling newly produced or recently relaunched goods and services.

The entire process of creating a product, from conception through market launch, is referred to as product development.

Prior to launching your items on the market, it's critical to guarantee that there is demand, your final products are of the greatest possible quality, and that your potential clients will receive value from them.

The best products also contribute to the advancement of society, whether through the product line itself or through the creation of new jobs and sources of income.

Therefore, in the product development process involves announcing a new product on social media the major step was Commercialization and launch.

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ILL GIVE CROWN!!!
what should a loan be taken out to pay for?
A. something essential that you need.
B. something important that you want.
C. something that would make life easier.
D. something that other people would envy.

Answers

Answer:

A.

Explanation:

its the most accurate answer.

essential things like a car or a home etc.

What are limited decisions

Answers

Answer: Limited decision-making is a little more involved than nominal decision-making

Explanation: But it's still not a process that requires in-depth research. Limited decisions are made about mid-cost products, semi-frequent purchases, or purchases from a somewhat familiar brand. ... Product quality.

Answer:

Limited decision are dicitons that consumer make that is used when purchasing products that require a moderate amount of time and effort to compare models and brands before making a choice. ...

Could you please explain what the benefits for having a checking account are, especially for minors?

Answers

Answer:

establish credit earn interest recieve deposits

Explanation:

Which of the following does not fall into the field of marketing?
-restaurant management
-education
-e-commerce
-professional sales

Answers

Answer:

professional sales

Explanation:

sales

Select the best answer for the question
9. You start a new business selling a product that's the best of its kind on the market. In addition to
A. Good marketing
B. A large staff
C. A franchise license
D. Sales experience

Answers

Answer:

the answer is A

Explanation:

if you can't market it good then it will fail

Your office is hosting a big meeting with some of its international
clients. During the meeting, one of the clients asks numerous,
very detailed questions. She also wants to see your risk
management plan. Which of these countries is she probably
from?
O Mexico
O United States
O Germany
O Ireland

Answers

Untied states or Mexico

How is an internship valuable to an intern?

Answers

Answer:

Internships help students master professional soft skills such as communication, punctuality and time management. These are skills that are key for success at a job and college and are highly sought after by companies. Many employers complain that there are few candidates with excellent soft skills.

"tractor is a modern tool of agriculture".justify this statement with suitable example​

Answers

Answer:

Tractors are the king among different farm equipment. They are the main workhorse of any modern farm. They provide the power and traction necessary to mechanize agricultural tasks. ... There are different types of tractors in the market, varying in size and capacity.

Explanation:

Indicate the point where a monopoly will set its price.

Answers

Answer:

A monopoly will set its price at the point where marginal cost and marginal revenue intersects or meet (MC = MR).

Explanation:

A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. Thus, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.

For example, a public power company that serves as the only power utility (electricity) provider to the public.

Generally, a monopoly will set its price at the point where marginal cost and marginal revenue intersects or meet (MC = MR). This is simply because a monopoly would derive the maximum profit at the point where MC = MR.

Answer:

The dot where green and red meet.

Explanation:

make a list of things that should be considered while managing a factory or an industry



plz say correct answer not stipude answer​

Answers

Quality Control is Essential

Get Prototypes Sorted First

Form Positive Working Relationships

Sorting the Premises

Bankrolling the Business

Understand the Legalities

explain any four consumer rights as stipulated in the CPA​

Answers

It’s a bill that has/says that every person has four basic consumer rights. Which are -“the right to be informed, the right to choose, the right to safety, and the right to be heard. ”

Answer:

The right to be informed, the right to choose, the right to safety, and the right to be heard.

Explanation:

These rights received a lot of attention from the consumer movement, a movement to pass laws protecting consumers from unfair and unsafe business practices.

Question 10 of 10 Which of the following best describes what a manager does? A. Influences others to purchase certain goods from certain stores B. Works for a company and produces resources to make a product C. Combines an idea, a plan, and various resources to start a new business D. Makes sure that a company is using its resources in a way that helps it meet its goals​

Answers

Answer:

d: makes sure that a company is using its resources in a way that helps it meet its goals.

Explanation:

the manager is the one that has the staff and everyone be apart of thats goals and asks thwm what type of goals they want to achieve to make the company better, but the manager is the one that makes sure they make all there deadlines towards there goals.

Which research tool is best suited to gathering qualitative market data?

A. Census statistics
B. In-depth interviews
C. Business records
D. Surveys

Answers

In-depth interviews is best suited to gathering qualitative market data.

What is market data?

Every business's success has been largely attributed to its use of market research techniques. Knowing the ins and outs of your target market is more important than ever in a world where competition seems to be endless.

Companies that benchmark can see 69% quicker growth and 45% higher productivity than those that don't, according to a PwC study.

Organizations have been able to learn not only some of the largest industry revelations, but also the smallest facts that most people miss, thanks to market research. Market research is crucial because it enables businesses to interpret information and make defensible judgments.

Therefore,  In-depth interviews is best suited to gathering qualitative market data.

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Answer:in-depth interviews

Explanation:

I just Took the quiz.

What is the drawback of carrying more inventory than is needed?
A. Customers can have a difficult time choosing between all the
product options
B. Purchasing large amounts of goods usually results in a lower price
per good.
C. Too many resources can be tied up in the inventory.
D. Suppliers do not like to receive extremely large orders for
inventory

Answers

Answer:

C. Too many resources can be tied up in the inventory.

Explanation:

Hope this helps!

Too many resources can be tied up in the inventory is the drawback of carrying more inventory than is needed. The correct option is C.

What are the uses of inventory?

The state of the goods is also examined during an inventory count. Inventory counts are useful for determining assets and liabilities in accounting. Inventory managers frequently utilize this data to estimate future stock requirements and oversee budgets. Inventory counts let you identify which stocks are selling well.

Poor quality products and degradation may result from an excess of inventory. It's likely that you have low inventory turnover, which implies you're not regularly turning all of your products if you have high volumes of excess stock. Unfortunately, unsold inventory that is stored in warehouses may start to deteriorate and expire.

Thus, the correct option is C.

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Diego is a product assembler for a picture frame manufacturing company. He chooses the sides and glass for each frame, making sure that they fit together properly. What quality might be helpful to Diego in his career?

a.) Diego is friendly and outgoing.

b.) Diego is good at managing other people.

c.) Diego is precise and gives attention to detail.

d.) Diego has excellent math skills.

Answers

Answer: C

“Diego is precise and gives attention to detail.”
This is because Diego’s job is making sure that pieces of glass fit together properly, which requires a person who pays attention to details.

I hope this helped :)

Answer: c

Explanation: I took the test and it was right

Larkspur Corporation manufactures drones. On December 31, 2019, it leased to Althaus Company a drone that had cost $104,800 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires 5 equal annual rentals of $37,400 payable each December 31, beginning December 31, 2019. An interest rate of 7% is implicit in the lease agreement. Collectibility of the rentals is probable. Prepare Larkspur’s December 31, 2019, journal entries

Answers

Answer:

First find the present value of the lease. Payments are constant and fixed so this is an annuity. As it is to be paid from the beginning, it is an Annuity due.

= Annuity * Present value interest factor of annuity due, 5 years, 7%.

= 37,400 * 4.3872

= $164,081

Date                          Account Details                            Debit              Credit

Dec. 31, 2019            Lease Receivable                         $164,081

                                 Cost of goods sold                       $104,800

                                 Sales                                                                    $164,081

                                 Inventory                                                             $104,800

Date                          Account Details                           Debit                Credit

Dec. 31, 2019           Cash                                             $37,400

                                 Lease Receivable                                               $37,400

You are seriously injured in an accident caused by another driver. She has $25,000 bodily-injury liability insurance, and your insurance company has found that she cannot afford to give you any more than this $25,000. You have $25,000 unin sured/underinsured motorist coverage. Your costs from the accident total $55,000. How much out-of-pocket cost will you have for this accident?

Answers

Answer:

50000

Explanation:

6. Toxic stress-such as extreme poverty, maternal depression, severe neglect, or exposure to
violence- are childhood experiences that can undermine the developing brain.
(1 Point)
O adverse
O cephalocaudal
O cognitive
O cortisol
O development
o infants
O maturation
O neurons
physical
O plasticity
O preschoolers
O proximodistal
O Social Emotional
O synapses
O toddlers
O window of opportunity

Answers

Answer:Adverse

Explanation:Search it up

What is the biggest business in the world right now and why.

Answers

Answer:

Apple

Explanation:

It is worth the most money. It is worth 2 trillion dollars.

Answer:

anime

Explanation:

an anime? jus cu.z i luv anime

Apple Computer maintains company headquarters in _____.

Answers

Answer:  Cupertino

Explanation: Apple Park is located 1.2 miles east of the original Apple Campus. Apple has had a presence in Cupertino since 1977, which is why the company decided to build in the area rather than move to a cheaper, distant location. The campus is also next to a contaminated site under Superfund legislation with a groundwater plume.

Critical reading is a
a Theory
b. Process
C. Summarization strategy
d. None of these
Please select the best answer from the choices provided
A
В
C
D

Answers

Answer:C

Explanation:

Answer:

The correct answer for this question is B

HELP:(
when people consider purchasing auto insurance, they must realize which of the following is true?
A. it is often too expensive for most people to buy.
B. it is a personal amenity that only a few people have.
C. it is only important for people with outdated cars.
D.it is required by law for all car owners.

Answers

The answer is B Because people will like to steal your car more then others

Burning of candle is which change?(chemical change or physical change)​

Answers

Burning a candle is a physical change
Hope that helped

Answer:

physical as it is getting smaller, but I would also say chemical as it's changing into melted wax? more of a physical change for me. hope this gelps

Under which tab can you find the options for reusing slides from other presentations?

Home
File
Insert
Design

Answers

More than likely under the design tab

Answer:

Home

Explanation:

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