Question

Suppose the cost of a car produced in the United States is $20,000. The current exchange rate is US$1 = €0.85. Instructions:
a. A country has $23,678 million in imports and $24,598 million in exports. Complete the table below based on this informatio
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Answer #1

Answer 1)

a) €17000

b) €15000

c) increase

...

The cost of car in terms of euros has decreased with depreciation of the dollar and appreciation of the euro.

Answer 2)

a) credit= $24598

Debit= $23678

b) surplus , 920

c) a) current account debit increase by $500million.( I'm not 100% sure on this others are absolutely correct. Sorry)

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