Homework Answers
The value of the dollar falls relative to the value of foreign currency.
It means more dollar will be required to buy one unit of foreign currency than before.
and, less foreign currency will required to buy one unit of the Dollar.
Due to this the import for the US will be costlier than before, and Export from US to other country will increase.
- Because of this the import for the US citizes will cost more. Hence, US citizens will import less goods and services from abroad
- A BMW automobile produced in Germany will cost more to import in the US.
- A trip to Europe will be more expensive in terms of dollars.
- Ford will export more cars to Mexico.
Answer: Option (D)
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The graph below shows demand and supply curves for U.S. dollars in the foreign exchange market. As...
The graph below shows demand and
supply curves for U.S. dollars in the foreign exchange
market. As you can see, the exchange rate (in terms of
foreign currency units per dollar) is initially equal to
E0.
Suppose that next year there’s
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answer these 4 . will rate after If the prices in the United States decrease compared...
answer these 4 . will rate after
If the prices in the United States decrease compared to other countries, we would expect o the demand for dollars to increase because U.S. goods are cheaper. the demand for dollars to decrease because U.S. goods are more expensive. the supply of foreign currency in the foreign exchange rate markets to decrease. the demand for foreign currency in the foreign exchange rate markets to increase. We were unable to transcribe this imageThe supply...
One function of the foreign exchange market is to Multiple Choice provide some insurance against foreign...
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The graph below shows demand and
supply curves for U.S. dollars in the foreign exchange
market. As you can see, the exchange rate (in terms of
foreign currency units per dollar) is initially equal to
E0.
Suppose that next year there’s
a huge increase in the number of foreigners – from Europe, China,
and everywhere else – who decide to visit the U.S. as
tourists.
How would this huge increase in tourism in the U.S. affect the
exchange rate? To answer this,...
answer these 4 . will rate after
If the prices in the United States decrease compared to other countries, we would expect o the demand for dollars to increase because U.S. goods are cheaper. the demand for dollars to decrease because U.S. goods are more expensive. the supply of foreign currency in the foreign exchange rate markets to decrease. the demand for foreign currency in the foreign exchange rate markets to increase. We were unable to transcribe this imageThe supply...
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