The United States immerses in global oil markets with their production through 'fracking'. How does it affect the euro/dollar exchange rate?
This will lead to a depreciation in the Euro / Dollar exchange rate as more and more nations from the Euro will demand that gas and that will increase the US exports appreciating the US dollar at a higher demand and depreciating the Euro at a lower demand for it. the Euro/ Dollar exchange rate will depreciate.
The United States immerses in global oil markets with their production through 'fracking'. How does it affect the euro/d...
68% of U.S. adults oppose hydraulic fracturing (fracking) as a means of increasing the production of natural gas and oil in the United States. You randomly select five U.S. adults. Find the probability that the number of U.S. adults who oppose fracking as a means of increasing the production of natural gas and oil in the United States is (a) exactly two, (b) less than four, and (c) at least three.
Donald Trump imposes tariffs on European products such as wine, oil or cheese. How does it affect the euro/dollar exchange rate?
How might expectations of lower global oil prices affect the demand for loanable funds, the supply of loanable funds, and interest rates in the United States? Will this affect the interest rates of other countries in the same way? Explain
Consider trade in automobiles between the United States and Europe. The average European car costs €15,000. Suppose that the United States does not import any other goods and services from other countries. In March, the U.S. dollar-euro exchange rate is $1.16 per euro, and the United States imports 90,000 European cars at this exchange rate. Therefore, in March, the United States spends a total of on imported European cars. If the total value of U.S. exports is $0.52 billion, the...
Suppose there is an increase in the average level of income in the United States, while the average level of income stays the same in countries that use the Euro as their currency. a) Describe and illustrate with graph the impact on the exchange rate between U.S. dollars and Euros. b) Did the U.S. dollar appreciate, depreciate or neither? Did the Euro appreciate, depreciate or neither? Was the change in the exchange rate associated with a good thing or a...
You are the CFO of a manufacturing company in the United States. Your company expects to receive €20 million Euro from a European customer in six months. At the same time, your company expects to pay €10 million Euro to a European supplier. The current exchange rate between US dollar and Euro is 1.13 USD/EUR. However, you are afraid that the Euro exchange rate may fluctuate and cause losses. You may use the Euro currency forward contract to hedge the...
Suppose that in 2010 the nominal exchange rate for the United States and Europe is $0.9/euro; by 2012, the nominal exchange rate falls to $0.8/euro. In addition, let us assume that the base year is 2010, at which consumer prices are set equal to 100. By 2012, the U.S. consumer prices increased to a level of 108, while European consumer prices increased to a level of 102. What is the real exchange rate?
Table: Production Possibilities in the United States and Colombia Colombia United States Quantity of coffee (tons Quantity of computers uantity ofQuantity of coffee (tons) computers 100 80 60 40 20 10 a) Look at the table Production Possibilities in the United States and Colombia. Which country should export coffee and which country should export computers? Justify your answer b) Look at the table Production Possibilities in the United States and Colombia. Suppose that in autarky, Colombia produces 10 tons of...
Investigate current exchange rates with at least two countries outside The United States to make comparisons on how the current exchange rates might affect trade with our country. I chose Germany and Switzerland, how does their exchange rate with the United States affect trade?
Economic activity in the United States increased at a stable speed over the first half of 2018. In this economic environment, economists worry that there might be a massive capital outflow from emerging markets in Asia to the United States. The exchange rate of USD to Malaysian Ringgit decreased from 0.2579 USD/Ringgit on 28 January 2018 to 0.2459 USD/Ringgit on 1 August 2018. With the help of a demand-supply diagram, briefly explain how did the capital outflow from Malaysia to...