Cloud Object Storage | Store & Retrieve Data Anywhere ...



Exchange Rates and International Finance Problem Set1. Suppose that the US imports $260 million worth of goods and services and exports $160 million worth of goods and services.What is the value of net exports?2. Suppose that the US imports $260 million worth of goods and services and exports $160 million worth of goods and services.As a result the US has a:trade deficit.balanced trade account.trade surplus.3. Other things the same, if the exchange rate changes from 2.3 Dinar per dollar to 7.6 Dinar per dollar, the dollar hasappreciated and buys more foreign goods.depreciated and buys fewer foreign goods.appreciated and buys fewer foreign goods.depreciated and buys more foreign goods.4. Other things the same, if the exchange rate changes from 7.6 Dinar per dollar to 2.3 Dinar per dollar, the dollar hasappreciated and buys more foreign goods.depreciated and buys fewer foreign goods.appreciated and buys fewer foreign goods.depreciated and buys more foreign goods.5. A depreciation of the U.S. exchange rate induces U.S. consumers to buyfewer domestic goods and fewer foreign goods.more domestic goods and more foreign goods.more domestic goods and fewer foreign goods.fewer domestic goods and more foreign goods.6. Other things the same, if the exchange rate changes from 2.3 Dinar per dollar to 7.6 Dinar per dollar, then the dollardepreciates which causes US net exports to increase.appreciates, which causes US net exports to decrease.depreciates which causes US net exports to decrease.appreciates which causes US net exports to increase.7. Other things the same, if the exchange rate changes from 7.6 Dinar per dollar to 2.3 Dinar per dollar, then the dollardepreciates, which causes AD to shift right.appreciates, which causes AD to shift left.depreciates, which causes AD to shift left.appreciates which causes AD to shift right.8. Other things the same, if the exchange rate changes from 2.3 Dinar per dollar to 7.6 Dinar per dollar, then as a resultAD shifts right.AD is unaffected.AD shifts left.9. Other things the same, if the exchange rate changes from 7.6 Dinar per dollar to 2.3 Dinar per dollar, then as a resultAD shifts right.AD is unaffected.AD shifts left. ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download