Problem
Analyze the concept of exchange rate:
Explain how the dollar price of euros is determined.
Identify a factor that can increase the dollar price of euros.
Identify a factor that can decrease the dollar price of euros.
Explain why a rise in the dollar price of euros means a fall in the euro price of dollars.
Explain the purchasing-power-parity theory of exchange rates, using the euro-dollar exchange rate as an example.
Explain why a quota is more detrimental to an economy than a tariff that results in the same level of imports as the quota.
What is the net outcome of either tariffs or quota for the world economy?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.