76 868
Assignments Done
Successfully Done
In June 2019

Answer to Question #63880 in Finance for genie

Question #63880
Keeping a country’s exchange rate artificially low will curb import spending and promote export spending, thus increasing AD. What are the drawbacks to this expansionary policy?
Expert's answer
The possible drawback to this expansionary policy is the rise in the price level and the rate of inflation as a result of increase in AD.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question

Privacy policy Terms and Conditions