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What will happen to the exchange rate if a country has low inflation and rapid economic growth?
Wiki User
∙ 14y ago
Exchange rates would most likely stay the same. If inflation increase or decreases I believe that is where exchange rates will more so be affected
Wiki User
∙ 14y ago
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What are the implications of rising inflation to an economy?
No economic growth or development, foreign exchange reserve and impact on the monetary policy.
Which economic term describes a period of slow economic growth that also has inflation?
Recession
What does annual economic growth refer to?
Annual economic growth refers to the yearly increase in the market value of services and goods that are produced during a year. Inflation and annual increases in the output of the services and goods are part of the economic growth of a country.
Four objective of macroeconomics?
Low unemployment Low Inflation High and stable economic growth The avoidance of balance of payments deficits and excessive exchange rate fluctuations (this one is concerned with international trade) They are actually Full Employment - lowest rate of unemployment attainable without accelerating inflation Price Stability - keeping inflation down (monetary policy, fiscal policy) Economic Growth - self explanatory External policy - Current account, exchange rate etc
Can to much economic growth lead to inflation?
No. They are not functions of one another.
What are the implications of rising inflation to an economy?
No economic growth or development, foreign exchange reserve and impact on the monetary policy.
What are the economic and political factors that affect the Philippines economic growth?
Economic factors that affect the Philippines' economic growth include inflation rates, exchange rates, fiscal policies, and infrastructure development. Political factors such as stable governance, corruption levels, and policy consistency also play a significant role in influencing the country's economic growth trajectory.
Which economic term describes a period of slow economic growth that also has inflation?
Recession
What does annual economic growth refer to?
Annual economic growth refers to the yearly increase in the market value of services and goods that are produced during a year. Inflation and annual increases in the output of the services and goods are part of the economic growth of a country.
Four objective of macroeconomics?
Low unemployment Low Inflation High and stable economic growth The avoidance of balance of payments deficits and excessive exchange rate fluctuations (this one is concerned with international trade) They are actually Full Employment - lowest rate of unemployment attainable without accelerating inflation Price Stability - keeping inflation down (monetary policy, fiscal policy) Economic Growth - self explanatory External policy - Current account, exchange rate etc
How a government can maintain fixed exchange rate?
If a government were to fix an exchange rate and stick to it, it could mean total economic failure for a country. Having the exchange rate fluctuate somewhat gives a chance for economic growth.
Can to much economic growth lead to inflation?
No. They are not functions of one another.
What indicators does not measure economic growth?
Economic growth can be measured in nominal terms, which include inflation. The growth of an economy is thought of not only as an increase in productive.
How does mild inflation stimulate economic growth?
gives money to governmant to use
What does the term Stagflation referred to?
a period of high inflation and slow economic growth
What are the economic factors affecting a business environment?
Economic factor that affect businesses: 1. Income 2. Inflation 3. Recession 4. Interest Rate 5. Exchange Rate There are four major elements that affect business environment. The elements are: 1. Economic growth 2. The business cycle 3. Employment and unemployment 4. Inflation
What are the economic factors affecting business environment?
Economic factor that affect businesses: 1. Income 2. Inflation 3. Recession 4. Interest Rate 5. Exchange Rate There are four major elements that affect business environment. The elements are: 1. Economic growth 2. The business cycle 3. Employment and unemployment 4. Inflation
