Answer:
a depreciation of the dollar that leads to greater net exports.
Explanation:
The interest rate is considered "the price of money". When the interest rate is high, more dollar is demanded and appreciated, as economic agents can make a greater profit from buying US bonds (which pay interest-rate). Thus, the dollar becomes more expensive. compared to other currencies. Conversely, when the interest rate decreases, the dollar tends to depreciate against other currencies.
Exports, in turn, are associated with the value between currencies. When the dollar depreciates, it means that more dollars can be bought with the same amount of foreign currency. In terms of trade, this stimulates exports, as dollar depreciation makes American products cheaper for other countries. Consequently, the competitiveness of the American economy increases as a whole.
For example, imagine a foreign company that buys US smartphones. If the rate is 1: 1, ie 1 foreign currency unit buys 1 dollar. Now imagine the Federal Reserve lowering the interest rate by depreciating the dollar so that the new exchange rate is 1: 1.20, ie 1 foreign currency buys $ 1.20. For the foreign company it was cheaper to buy American smartphones, as the dollar depreciated against its currency. In contrast, for the US to buy (import) goods from another country is more expensive. Since the net trade balance is the difference between exports and imports, the economy tends to have a higher net export balance.
Answer:
In political science, a revolution is a fundamental and relatively sudden change in political power and political organization which occurs when the population revolts against the government, typically due to perceived oppression (political, social, economic) or political ...
Answer:
More important was the impact that it had on people's lives: the Depression brought hardship, homelessness, and hunger to millions. THE DEPRESSION IN THE CITIES In cities across the country, people lost their jobs, were evicted from their homes and ended up in the streets.
These people were forced to live in absolute poverty. Nearly 50% of children were deprived of adequate food, clothing, shelter, education or medical care. Americans living in such primitive conditions were subject to many health problems. There was no easy access to health care.
Explanation:
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