26 Jul WHAT CAUSES EXCHANGE RATES BETWEEN VARIOUS COUNTRIES TO CHANGE ON A CONTINUOUS BASIS?
Page 432 # 2. Bill can paint either two walls or one window frame in one hour. In the sa Show more Chapter 15 Page 432 # 2. Bill can paint either two walls or one window frame in one hour. In the same time Frank can paint either three walls or two window frames. To minimize the time spent painting who should specialize in painting walls and who should specialize in painting window frames? Note: You must show your work and explain how you got your answer. To answer this question you must understand the concepts of Opportunity Costs and Comparative Advantage. This problem may not seem to make sense to you at first. Consider that all of us must understand what our comparative advantage is to make the most of our lives and our careers. What is the definition of exchange rates? How much can one US dollar be exchanged for in Canadian Currency (look this up on-line)? What causes exchange rates between various countries to change on a continuous basis? To answer this you must understand what is explained on pages 420-424. You really need to answer the why question for this problem. Show less
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