Quote:
Originally Posted by silviston
Hey Dave,
Thanks for your good work, i would like to thank you for your effort and time in building this resource site.
Here are my takes
1. lower interest rates
2. increase interest rates
3. The currency would increase in value
4. The currency would decrease in value
5. The deficit would increase and currency would decrease
6. The deficit would decrease and the currency would increase
7. The currency would increase in value
8. CAD would increase, JPY would decrease
9. Consumer spending accounts for good part of US economy (Effect on GDP)
10. Major Industry sector - Service
Economy - Capitalist
Cheers,
Silviston
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Hi Silviston,
Thanks for the comment I am glad you like the site and welcome to the community we are happy to have you.
Also thank you for participating it seems that you have a very good handle on things as well.
1. Correct - decrease in rates expected to try and spur growth
2. Correct - increase in rates expected to reign in inflation
3. Correct - currency should strengthen as more foreign capital flows in.
4. Correct - currency should weaken as more capital flows out.
5. Almost Correct - you are correct that the currency should weaken and you are correct that the current account balance should decrease however the current account does not necessarily have to be in deficit in this scenario it could simply become less positive.
6. Almost Correct - the currency should strengthen and the current account should increase however the current account does not have to be in deficit it can simply become more positive.
7. Correct - the value of their currency should rise
8. Correct - the rate for CAD/JPY should increase as the Canadian Dollar strengthens and the Japanese Yen Weakens
9. Correct - consumer spending makes up over 2/3rds of GDP.
10. Correct - the US Economy is a Service Based Economy.
Thanks for participating it seems like you are ready to move forward as well.
Best Regards,
Dave