The Economics of Money, Banking, and Financial Markets 10th Edition by Frederic Mishkin

النسخة 10الرقم المعياري الدولي: 978-0132763646

The Economics of Money, Banking, and Financial Markets 10th Edition by Frederic Mishkin

النسخة 10الرقم المعياري الدولي: 978-0132763646

تمرين 2

According to Figure 8, in which years would you have chosen to visit the Grand Canyon in Arizona rather than the Tower of London?

التوضيح

موثّق

Here we need to point out the years when it is beneficial to visit Grand Canyon in US rather than visiting the. Here the analysis is warranted purely on the basis of exchange rate pattern. In those years when the value of Dollar fall compare to the value of Pound then it is beneficial to visit US rather than. The rationale for this is - when dollar value falls a trip will be much cheaper than a time when the dollar value is high.
According to the figure 8 it can be said that in the years of 1971 to 1973, the period of 1978-80, then after 1985 to 1985 (with little fluctuations) and then again after 2000 it would be beneficial to visit Grand Canyon than Tower of London, since in all these periods dollar value is depreciated.