1.What was the Louvre Accord? 2 According to target zone research, does the establishment of a target zone for exchange rates increase or decrease the range within which exchange rates typically...

1.What was the Louvre Accord? 2 According to target zone research, does the establishment of a target zone for exchange rates increase or decrease the range within which exchange rates typically fluctuate? 3. Assume the following gold prices have been declared by the central banks:

a. Bank of England £500

b. Federal Reserve System $950

c. European Central Bank e620

d. Reserve Bank of Australia A$1,000

e. Bank of Canada C$975

Calculate all possible exchange rates between the currencies.

4. What assumptions have you made in Question 1? 5. How can government objectives such as the maintenance of full employment hinder the functioning of the gold standard?