Question

Question 16 2.5 pts Canada, a major trading partner of the United States, experiences substantial economic growth. We would expect U.S. exports to and the U.S. dollar increase; depreciate increase; appreciate decrease; depreciate decrease; appreciate

Answer 1

16.

Decrease, Depreciate

When a country imports goods, the money it spends on imported goods leaves the economy, and that reduces the importing nation's GDP.

so less export for United States will result their economy to depreciate and hence the value of dollar will be decreased.

Depreciate, Appreciate

High interest rate means less borrowing, so Dollar to be depreciated and Yen to be appreciated.

Real interest rate = Nominal interest rate - Inflation [ Question incomplete ]

The global economy, investors and beneficiaries benefit from foreign direct investment. Money goes to businesses with the best prospects for success worldwide.

Increase, Depreciating

As the American products are being expensive Mexico will reduce exports and hold some portion of goods for their own country. When there are more exports the home countries currency will be appreciated.

But form United States point of view it will reverse.