Amerika lifts the quota that it applies on the products that it imports from Euro Area and at the same time there is a changing trend in the demand of Americans from EU products to the Japanese products, then how do you thing the following exchange rates will change under the conditions of floating exchange rate system?Sketch graphs a)Dollar/Yen b)Yen/Dollar
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- 3 / 3 100% 每 8. The price of a laptop in the United States is $1,000. The price of a car in taly is 10,000 euros The current exchange rate rs09 curos per dollr. Ifa laptop is exported from the United Startes to Italy with no barriers to trade, what will be the price of the aptop in Italy? Ira car is imported to the United States from luh with barriers to trade, what will be the price of the crin ahe Ented Statres? Suppose the dollar appreciates by 0pereent aganscihecomo. Whr will be the price ofa computer exporied from the United States changem ltaly? -Suppose thhe dollarapprecites br 10 percentagamst the curoWt willbethe price of a car inmported to the Enred States from Ital chnge m tdhe Eaed Statese (8 marks) (2marks) 2marks) (2marks] (2marks)E1 The higher the value of e, the ______________(More or less) units of foreign currency a dollar buys. When a nominal exchange rate goes up, we say the domestic currency is _________(appreciating or depreciating) against the foreign currency. When a nominal exchange rate goes down, we say that the domestic currency is _________(depreciating or appreciating) against the foreign currency.If a cup of coffee costs 2 euros in Paris and $6 inNew York and purchasing-power parity holds, what isthe exchange rate?a. 1/4 euro per dollarb. 1/3 euro per dollarc. 3 euros per dollard. 4 euros per dollar
- O Macmillan Learning Suppose the exchange rate between Canada and the United Kingdom is equal to 1.70 Canadian dollars (CAD) required to buy 1 British pound. Calculate the missing prices assuming that purchasing power parity (PPP) holds. Price in Canada Kilo of bananas Kilo of strawberries Kilo of kiwis 9.10 CAD Kilo of oranges 3.00 CAD Enter all answers as numbers rounded to two decimal places. Price of a kilo of kiwis in the United Kingdom: Price of a kilo of bananas in Canada: Price in the United Kingdom 2.90 pounds 3.80 pounds I Enter numeric value pounds CADWhat is the difference between depreciation and devaluation? O There is no difference. O Depreciation refers to a fixed exchange rate, while devaluation refers to a floating exchange rate. O Depreciation refers to a floating exchange rate, while devaluation refers to a fixed exchange rate.Consider the balance-of-payments accounting information for Lalaland in 2010 as shown in the table below. All values are in billions of dollars and any variables not provided below have a value of zero. Exports Imports Net foreign-investment income Capital outflows Capital inflows 500 510 - 40 180 90 What is the net change in the stock of Lalaland's investments abroad in 2010? ..... O A. an increase of $30 billion O B. a decrease of $30 billion OC. a decrease of $50 billion O D. an increase of $50 billion O E. insufficient information to determine
- United Arab Emirates 14.75 3.6731 Argentina 171 60.0656 Australia 6.45 1.449065353 Azerbaijan 3.95 1.6965 Bahrain 1.4 0.377 Brazil 19.9 4.1419 The table contains the price of a BigMac in a variety o fcountries. The table also contains exchange rates relative to the US dollar. Assume the United Kingdom is the home country. a. Assuming that purchasing power parity, (i.e. law of one price) holds, calculate the ex-change rate implied/predicted by PPP for each country. b. Which currency is the most undervalued and most overvalued relative to the BritishPound?The questions in this part are based on Exchange Rates in the SARB Quarterly. Bulletin, March 2022, S-112. In 2021 the rand appreciated against the Brazilian Real, Chinese Yuan, EU Euro, UK Pound and US Dollar. OTrue OFalse In June 2021 the rand/Japanese yen was In 2020 the Rand/Euro exchange rate was cents (3 decimal places) cents (2 decimal places) against the Euro and compared to April In May 2021 the South African rand. 2021. Oappreciated OdepreciatedHow might its balance of payments position be problematic for a country that is pegging its exchange rate? pls help asap
- Elaborate the factors that may influence exchange rates between China Reminbi and US Dollar.A case study in the chapter analyzed purchasingpower parity for several countries using the pricc ofBig Macs. Here arc data for a few more countries: a. For each country, compute the predicted exchangerate of the local currency per U.S. dollar. (Recallthat the U.S. price o( a Big Mac was $4.93.)b. According to purchasing-power parity, what is thepredicted exchange rate between the Hungarianforint and the Canadian dollar? What is the actualexchange rate?c. How well docs the theory of purchasing-powerparity explain exchange rates?In Delhi, a haircut costs 135 rupees (INR). Thesame haircut costs 15 Singapore dollars (SGD) inSingapore. At an exchange rate of 50 IN per SGD,what is the price of an Indian haircut in terms of aSingapore haircut? Keeping all else equal, howdoes this relative price change if the INRdepreciates to 55 INR per SGD? Compared to theinitial situation, does a Singapore haircut become more or less expensive in relation to an Indianhaircut?