Purchasing power parity does a ________ job in explaining movements in nominal exchange rates in the short run and does a ________ job in explaining movements in nominal exchange rates in the long run

Write down a model that will allow you to analyze the BOP and exchange rate in a monetary framework. Then, discuss the consequences of an increase in the foreign inflation rate under fixed, flexible, and managed floating systems

What will be an ideal response?

Theories of economic business cycles have evolved to a point of agreement: they are caused internally by interaction between an economy's multiplier and accelerator

Indicate whether the statement is true or false