Explore BrainMass

Explore BrainMass

    Floating exchange rates

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Assume that economic growth is slower in the United States than in its trading partners. Given a system of floating exchange rates, will the impact of this growth differential be for the United States with respect to exports and the value of the dollar? Explain.

    © BrainMass Inc. brainmass.com October 9, 2019, 5:30 pm ad1c9bdddf

    Solution Preview

    The partner countries are growing at a much faster rate that means the aggregate demand in those countries is higher. Due to high demand ...

    Solution Summary

    Increased exports are contextualized.