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## eco212 Chapter 18 notes

by: Daniel Martchek

65

0

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# eco212 Chapter 18 notes ECO212

Marketplace > University of Miami > Economcs > ECO212 > eco212 Chapter 18 notes
Daniel Martchek
UM
GPA 3.1
Macro Economics
Dr. Faria

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Here are the main points I picked up from Faria's chapter 18 lectures.
COURSE
Macro Economics
PROF.
Dr. Faria
TYPE
Class Notes
PAGES
1
WORDS
KARMA
25 ?

## Popular in Economcs

This 1 page Class Notes was uploaded by Daniel Martchek on Thursday April 16, 2015. The Class Notes belongs to ECO212 at University of Miami taught by Dr. Faria in Spring 2015. Since its upload, it has received 65 views. For similar materials see Macro Economics in Economcs at University of Miami.

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Date Created: 04/16/15
EC0212 Chapter 18 notes Appreciation gaining value compared to others PPP purchasing power parity The same good in two locations should command the same price Theory that helps determine exchange rate e of American English nominal exchange rate PPe PUSA of PUK If E Signs Cancel enominal exchange rate If P were higher people would buy goods in the UK ThCy vvuunu uc cheaper They could sell them in the United States for pro t In the UK demand for the pound and price would increase In the United States prices would fall and supply would increase Higher demand the pound goes up so nominal exchange rate e increases In a good economy nominal interest rate exceeds in ation rate so that real interest rate is positive Chapter 17 Aee App AIDl0 Amm Ayy Amm AyY This formula explains in ation s in uence on the nominal exchange rate Trends show that higher in ation leads to a tendency to depreciate Europeans would rather buy into United States assets bonds real estate investments etc than goods

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