For This or a Similar Paper Click To Order Now

Status: Required Problem Statement Nowadays, most countries are involved in int
Status: Required Problem Statement Nowadays, most countries are involved in international trade, which requires them to convert their currencies into other countries’ currencies to make investments, and/or export or import goods. An essential task of economists in any country is the exchange rate determination (or prediction). Fluctuations in the exchange rate, the prices many households pay to obtain foreign-made goods and services are known as imports. For instance, in 2019, the total value of US exports was 1.7 Trillion dollars, and the total value of US imports was 2.5 Trillion dollars. Select two (2) countries (your instructor must approve your choice) that are economically similar in terms of their GDP per capita, unemployment rates, and inflation rates. For instance, the US and Canada can be considered economically similar. The price index to be used can be the Consumer Price Index (CPI) or the GDP Deflator. You can visit the website Global Economy.com to easily compare countries to check for similarity - https://www.theglobaleconomy.com/compare-countries/ Then use the price indices and the exchange rate of these two countries' currencies data to verify the evidence of the theory of PPP.

For This or a Similar Paper Click To Order Now

Leave a Reply

Your email address will not be published. Required fields are marked *

For This or a Similar Paper Click To Order Now