Question

Is anyone here good at macroeconomics?

Show and explain how the increase in inflation will affect the international value of the United States dollar and the foreign dollar. (Make sure you use the concepts of supply and demand and the cost of domestic goods in your explanation.)

if so can you just help me graph this?

Answer 1

Well to graph it you need the info, so do you need help finding the numbers or?

Answer 2

i don't think i need the numbers though

Answer 3

Oki well inflation would mean more money is available

Answer 4

More money would mean higher prices because they have to try and balance it out, so since we would have more money the other countries would have to change the amount of money that for example 10 dollars would be worth in their own currency

Answer 5

You understand?

Answer 6

I see yeah.... how do i graph this though? the graphing part is kinda confusing to me

Answer 7

Hrm well perhaps you can label one side of the graph amount of U.S. dollars then on the other side label it other currencies
@Shadow What do you think?

Answer 8

I can wait for him to answer but I think the graph is supposed to look something like this but again i dont know how to label it

Answer 9

I told you how e.e

Answer 10

dude I mean the other parts of the graph... like AS and AD