15) When the nominal exchange rate in terms of dollars per yen rises, A) the dollar buys more yen and the dollar has depreciated. B) the dollar buys fewer yen and the dollar has depreciated. C) the dollar buys more yen and the dollar has appreciated. D) the dollar buys fewer yen and the dollar has appreciated.

15) When the nominal exchange rate in terms of dollars per yen rises, A) the dollar buys more yen and the dollar has depreciated. B) the dollar buys fewer yen and the dollar has depreciated. C) the dollar buys more yen and the dollar has appreciated. D) the dollar buys fewer yen and the dollar has appreciated.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A consumer living in Ithaca, NY buys $1,000 dollars worth of toys from a company that manufactures toys in Tokyo, Japan. If we consider the US Balance of Payments and assume all foreign exchange transactions are between private citizens, this purchase results in to net exports and to private foreign assets in the US. a) a debit; a credit b) a credit; a debit C) a credit; a credit D) a debit; a debit
Explain the impact on US export and import if the US dollar has depreciated in comparison with other currencies. For example, the exchange rate for the Canadian dollar was 1.36 per U.S dollar in 2003. Now in 2020, it is 1.31 Canadian dollars per U.S.dollar under this case the dollar has suffered a slight depreciation. Also, when the dollar has depreciated in the case of the Chinese Yuan from 8.27 in 2003 to 6.69 yuans in 2020 per U.S dollar. Also, when there is not either appreciation or depreciation from 2003 to 2020 which is the case of Saudi Arabia currency its exchange rate remains the same 3.75 Riyals per dollar since 2003. Then explain the impact of U.S. exports and imports under these scenarios.
Other things the same, if the exchange rate changes from 125 yen per dollar to 135 yen per dollar, the dollar has appreciated and so buys more Japanese goods. depreciated and so buys fewer Japanese goods. depreciated and so buys more Japanese goods. appreciated and so buys fewer Japanese goods.
Please help me figure out the answers to these two questions. Please also explain the correct answers to me and if you can highlight the correct choice.
Based on the Exchange rates above, Which of the following is true? A)More pounds are needed to buy a dollar, so the dollar is appreciating B)The dollar is less expensive in pounds and is depreciating C)The dollar is growing stronger against the pound D)The dollar is more expensive in pounds and is appreciating Year 2014 2015 2016 US $ 1$ 1$ 1$ British Pound .85 .70 .60
The current exchange rate is $1.00 = 1.50 Swiss franc. The exchange rate is expected to be $1.00 = 1.25 Swiss franc in six months. The U.S. dollar is expected to A. depreciate and the U.S. will import more from Switzerland B. appreciate and the U.S. will export more to Switzerland C. appreciate and the U.S. will import more from Switzerland D. depreciate and the U.S. will export more to Switzerland
The dollar appreciated by 25% relative to the yen and the direct exchange rate is now 0.01 in the US. Find the old exchange rate prior to the dollar appreciation.
Consider the effects of an increase in Japanese interest rates on the exchange rate between the British pound and the Japanese yen. This will ________ the supply of British pounds. As a result, the British pound will _________ with respect to the yen. a)increase; depreciate b)decrease; depreciate c)decrease; depreciate d)increase; appreciate
What may cause a nominal appreciation of the domestic currency if the real exchange rate is constant? Select one: a. a decline in the terms of trade. b. an increase in the price of the foreign good. c. an increase in the price of the domestic good. d. an increase in the domestic rate of inflation.
Suppose the average price of a Big Mac in the United States is $3.50 while in Japan the average price is 400 yen. If the market exchange rate is that 1 dollar is exchanged for 100 yen, the purchasing power parity model of exchange rate determination suggests that: a. the yen is overvalued. b. the yen value is about correct. C. the price of a Big Mac in Japan will rise. d. the dollar will depreciate against the yen.
An appreciation of the exchange value of the U.S. dollar would: A) increase the dollar prices of U.S. imports and the foreign cost of exports from the U.S. B) decrease the dollar prices of U.S. imports and the foreign cost of exports from the U.S. C) increase the dollar prices of U.S. imports, but decrease the foreign cost of exports from the U.S. D) decrease the dollar prices of U.S. imports, but increase the foreign cost of exports from the U.S.
10) Assume the overall US market price for retail chocolate is $7.00 per pound, and in order to attract "Chocoholic Tourists" from Europe, the Hershey company decides to lower its price to $6.00 per pound. Based on the Purchasing Power Parity theory of exchange rates, what will eventually happen the effective price of chocolate for European buyers, assuming the Euro-USD exchange rate starts at 1€ Per $1.00? Using the chart below, determine the exchange rate at which Hershey's effective chocolate prices will match those of the rest of the chocolate market? # of Lbs Chocolate Exchange Exchange Chocolate 200 Effective budget in Rate Euros Rate budget in Price Euro Euro/$ $/Euro $'s Euros will buy 200.00 € 1.00 1.00 $200 33.33 6.00 € 200.00 € 1.05 0.95 $190 31.75 6.30 € 200.00 € 1.10 0.91 $182 30.30 6.60 € 200.00 € 1.15 0.87 $174 28.99 6.90 € 200.00 € 1.20 0.83 $167 27.78 7.20 € 200.00 € 1.25 0.80 $160 26.67 7.50 € 200.00 € 1.30 0.77 $154 25.64 7.80 € 200.00 € 1.35 0.74 $148 24.69 8.10 €