Homework Answers
If the real exchange rate depreciates, that means Canada now will get less Japanese good in exchange for 1 Canadian good. That means, Japanese goods are now costlier to Canada than it was before. So, Canada's import will decrease. However, as Japan now gets more Canadian good in exchange for 1 Japanese good, so they will import more from Canada. This will increase Canada's export.
Answer: option C
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38. If the real exchange rate depreciates from one Japanese good per Canadian good to 0.5 Japanese good per Canadian...
2013607#918 98 Net exports will increase if: Select one: O a. the exchange rate for the...
2013607#918 98 Net exports will increase if: Select one: O a. the exchange rate for the dollar appreciates b. the exchange rate for the dollar depreciates c. there is a decrease in investment O d. there is a decrease in foreign Real GDP On a simple circular flow diagram:
How would aggregate demand change if foreign incomes increase and the exchange rate value of the...
How would aggregate demand change if foreign incomes increase and the exchange rate value of the dollar increases? a. Neither change would affect aggregate demand. b. The increase in income would decrease aggregate demand; the increase in the exchange rate would increase aggregate demand. c. The increase in income would increase aggregate demand; the increase in the exchange rate would decrease aggregate demand. d. Both changes would decrease aggregate demand If the exchange rate value of the dollar depreciates relative...
If the real exchange rate increases [(Es/euros)"(PEurope)/Pu.s.), U.S. exports to Europe__and U.S. imports from Europe increase;...
If the real exchange rate increases [(Es/euros)"(PEurope)/Pu.s.), U.S. exports to Europe__and U.S. imports from Europe increase; decrease decrease; decrease decrease; increase increase; increase
39. In a small open economy, if the world interest rate falls, then domestic investment will _and the real exchange...
39. In a small open economy, if the world interest rate falls, then domestic investment will _and the real exchange rate will holding all else constant. A) decrease; decrease B) decrease; increase C) increase; decrease D) increase; increase
Figure 13-2 Real Interest Rate Supply of Loarable Funds World interest rate, o Derrand for Loanable...
Figure 13-2 Real Interest Rate Supply of Loarable Funds World interest rate, o Derrand for Loanable Funds Quantity of Loanable Funds Real Exchange Rate Supply of Canadian Dollars (5-1) Quantity of Dollars Refer to the Figure 13-2. If the interest rate was initially at ro and an import quota was imposed, what would happen to the real interest rate? It would decrease because demand would shift left. It would decrease because supply would shift right. It would not change because...
1a. In the foreign exchange market, a decrease in the world demand for Japanese exports a....
1a. In the foreign exchange market, a decrease in the world demand for Japanese exports a. shifts the demand curve for yen leftward, which causes the yen to appreciate. b. shifts the demand curve for yen rightward, which causes the yen to appreciate. c. shifts the demand curve for yen rightward, which causes the yen to depreciate. d. shifts the demand curve for yen leftward, which causes the yen to depreciate. 1b. A relatively high rate of inflation in the...
1.) $802, $902, $1,002, $1,202 2.) increases/decreases 3.) depreciates/appreciates 6. Pricing foreign goods The nominal exchange...
1.) $802, $902, $1,002, $1,202
2.) increases/decreases
3.) depreciates/appreciates
6. Pricing foreign goods The nominal exchange rate is the price of one currency in terms of another currency. A nominal exchange rate speofies how many units of one country's currency are needed to buy one unit of another country's currency. Suppose the following table presents nominal exchange rate data for November 26, 2014, in terms of U.5. dollars per unit of foreign curreno, Ue the information in the table to...
26. If the US real exchange rate appreciates against major countries, then which of the following...
26. If the US real exchange rate appreciates against major countries, then which of the following is true about US exports and imports? a. The US export increases and import decreases b. The US export decreases and import increases c. Both export and import increases d. Net export remain unchanged 27. Which of the following statement is true? a. If national saving is greater than national investment, then net export is positive. b. If national saving is less than national...
Suppose that on January 1, the Yen price of the dollar is 95 (C$1= ¥100). Over the year, the Japanese inflation rate is 5%, and the Canadian inflation rate is 7%. At the end of the year, the exchange rate is C$1 = ¥98.
Suppose that on January 1, the Yen price of the dollar is 95 (C$1= ¥100). Over the year, the Japanese inflation rate is 5%, and the Canadian inflation rate is 7%. At the end of the year, the exchange rate is C$1 = ¥98. (a) Based on this information is Yen undervalued or overvalued according to PPP? Explain.What happened to the real exchange rate? Explain.
answer these 4 . will rate after A reduction in the British interest rate relative to...
answer these 4 . will rate after
A reduction in the British interest rate relative to the U.S. interest rate will cause a(n): appreciation of the dollar and an appreciation of the British pound. O appreciation of the dollar and a depreciation of the British pound. depreciation of the dollar and an appreciation of the British pound. O depreciation of the dollar and a depreciation of the British pound. A decrease in preference for Japanese automobiles, all else the same,...
2013607#918 98 Net exports will increase if: Select one: O a. the exchange rate for the dollar appreciates b. the exchange rate for the dollar depreciates c. there is a decrease in investment O d. there is a decrease in foreign Real GDP On a simple circular flow diagram:
If the real exchange rate increases [(Es/euros)"(PEurope)/Pu.s.), U.S. exports to Europe__and U.S. imports from Europe increase; decrease decrease; decrease decrease; increase increase; increase
39. In a small open economy, if the world interest rate falls, then domestic investment will _and the real exchange rate will holding all else constant. A) decrease; decrease B) decrease; increase C) increase; decrease D) increase; increase
Figure 13-2 Real Interest Rate Supply of Loarable Funds World interest rate, o Derrand for Loanable Funds Quantity of Loanable Funds Real Exchange Rate Supply of Canadian Dollars (5-1) Quantity of Dollars Refer to the Figure 13-2. If the interest rate was initially at ro and an import quota was imposed, what would happen to the real interest rate? It would decrease because demand would shift left. It would decrease because supply would shift right. It would not change because...
1.) $802, $902, $1,002, $1,202
2.) increases/decreases
3.) depreciates/appreciates
6. Pricing foreign goods The nominal exchange rate is the price of one currency in terms of another currency. A nominal exchange rate speofies how many units of one country's currency are needed to buy one unit of another country's currency. Suppose the following table presents nominal exchange rate data for November 26, 2014, in terms of U.5. dollars per unit of foreign curreno, Ue the information in the table to...
answer these 4 . will rate after
A reduction in the British interest rate relative to the U.S. interest rate will cause a(n): appreciation of the dollar and an appreciation of the British pound. O appreciation of the dollar and a depreciation of the British pound. depreciation of the dollar and an appreciation of the British pound. O depreciation of the dollar and a depreciation of the British pound. A decrease in preference for Japanese automobiles, all else the same,...
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