Reserve currency

the price of goods and services. It means people use the same unit of currency but buy fewer goods and services. In the other word, inflation reduces the purchasing power per unit of currency. Currency is the medium of exchange, including banknotes and coins. People use currency to buy goods and services. We can say, in almost all situations, the value of the currency as the medium of exchange is more than the value of the currency itself. For example, one dollar banknote is more valuable than…

1A, Mercantilism is the belief of trade where you show countries wealth by gold. Mercantilism encouraged exports and discouraged imports. This theory was flawed because it believed the only way to improve one’s country was at the expense of others. Which lead to restricted international trade and paying colonies almost nothing for their exports and charging heavily for their exports. 1B Absolute advantage refers to the ability of a country to produce a good or service better than any other…

1. “The Gold Coin” and “Fur Coat” are a pairing of caselets which exhibit the theme of an offering. This theme may be described as when a party is offered something (or in this case, advertised something as an offer), and the other party does not follow through with completing the exchange. In Gold Coin, the advertisement for the item created a binding offer which obliged the seller to honor the ad (even though it was out of stock). While in breach of contract, sadly, the only damages the other…

1. Please explain inelasticity and elasticity of demand. What happens when there is a tax on luxury items? In economics, elasticity is the measure of responsiveness towards the demand for a product when its price is changed. The basic formula for calculating the elasticity of a product is to divide the percentage change in quantity demanded by the percentage change in price. When the value of elasticity is greater than one percent, it indicates that the demand for the good is sensitive to…

INTRODUCTION OF BITCOIN. Bitcoin is the first decentralized digital currency. Bitcoin is a digital coin that you can send through the internet. Compare to the other alternative, Bitcoin have some advantages. Bitcoin can transfer directly from person to person without going through a bank. So, the fee are much low, we can use the money at every country around the world, our account cannot be frozen, and no pre-requisite to access the bitcoin account. Now, majority of people are busy, does not…

and the World Bank both of which play important roles today. A fixed but adjustable exchange-rate system also emerged that lasted until the early 1970s. Other currencies became fixed to the dollar, which was convertible to gold at 35$/ounce, and capital controls were introduced to allow governments to restrict convertibility of their currency for capital account transactions. The main motivation for participants at the conference to agree a new international monetary system was the fact that the…

in a short period of time, this causes people to horde their currency instead of spending it in the hope that they will get more for their money in the following days, weeks or years. The value of Bitcoin has soared and is continuing to grow; as people horde the currency the value is pushed up even further. Hyper-deflation is causing Bitcoin users to refrain from buying goods and services through bitcoins, this leads the economy…

American exceptionalism can be a contributing factor leading them to want to excel even on trade. Nevertheless, trade is not about who is the winner in the game, trade is about who has a better comparative advantage. In the eyes of the world, America’s number one place is getting obscured by that of China to the point that Americans see it as a backlash. In reality China is changing so rapidly that I am afraid America will be able to keep up with China. But China’s rapid growth should not be an…

cover how the different categories of pricing and goods are impacted by the strength of the U.S. dollar versus the Japanese Yen. Origin In the beginning, it was believed that letting a country’s currency depreciate would have negative effects on the economy. Further study and time has indicated that currency depreciation has positive effects on a country’s trade balance in the long run. A study conducted from 1960-2011, indicates the positive…

and …) that means it is decentralized internet and payment system. Ethereum platform uses smart contracts to achieve this goal. Smart contracts are programs and application which are running and using without controlling by third parties. The currency of Ethereum is ether which is introduced as a fuel to run applications on this platform. How to earn Ether 1.Buying…