4. Deriving net exports By definition, net exports from Japan are equal to exports from Japan minus imports into Japan. In a hypotheticall two-country world, imports into Japan are equal to exports from the United States. So the value for net exports from Japan is equal to exports from Japani minus exports from the United States, Graphically, at each exchange rate, the value for net exports is the horizontal distance from U.S. exports to Japanese exports. Use the graph input tool to answer the following questions. You will not be graded on any changes you make to this graph. (Note: To avoid dealing with decimal places, this calculator reports the price of yen in terms of dollars per 1,000 yen. That is, the price on the vertical axis is the dollar price of a 1,000-yen note instead of a single yen. As you have already seen, a price of 8 dollars per 1,000 yen is the same as 125 yen per dollar. Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.) EXCHANGE RATE (Dalars per 1,000 yen Graph Input Tool Price $2 Exports from us. 18 (Dollars per 1,000 yen) Exports from Japan 18 (Trillion yen) Exports from U.S. (Than Yen) 12 TO NX from Japan (Trillion yen) 16 Exports from Japan D. • 10 12 14 16 18 20 YEN (Trilion) Suppose that the price of yen is $5 per 1,000 yen. Net exports from Japan will be trillion yen Suppose that the price of yen is $7 per 1,000 yen. Net exports from Japan will be trillion yen. Based on the data from the previous two parts of this problem, use the blue line (circle symbol) to plot net exports for Japan as a function of the price of yen on the following graph. (Note: Select and drag the curve from the palette to the desired position on the graph.) PRICE OF YEN (Delers per 1,000 yan) YEN (Trillon) NX from Japan The previous graph you constructed should show that net exports from Japan would be negative if the price of yen increased to a high enough level. such as an amount greater than $10 per 1,000 yen. If you convert this price into the form typically quoted in the newspaper, this price corresponds to yen per dollar
4. Deriving net exports By definition, net exports from Japan are equal to exports from Japan minus imports into Japan. In a hypotheticall two-country world, imports into Japan are equal to exports from the United States. So the value for net exports from Japan is equal to exports from Japani minus exports from the United States, Graphically, at each exchange rate, the value for net exports is the horizontal distance from U.S. exports to Japanese exports. Use the graph input tool to answer the following questions. You will not be graded on any changes you make to this graph. (Note: To avoid dealing with decimal places, this calculator reports the price of yen in terms of dollars per 1,000 yen. That is, the price on the vertical axis is the dollar price of a 1,000-yen note instead of a single yen. As you have already seen, a price of 8 dollars per 1,000 yen is the same as 125 yen per dollar. Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.) EXCHANGE RATE (Dalars per 1,000 yen Graph Input Tool Price $2 Exports from us. 18 (Dollars per 1,000 yen) Exports from Japan 18 (Trillion yen) Exports from U.S. (Than Yen) 12 TO NX from Japan (Trillion yen) 16 Exports from Japan D. • 10 12 14 16 18 20 YEN (Trilion) Suppose that the price of yen is $5 per 1,000 yen. Net exports from Japan will be trillion yen Suppose that the price of yen is $7 per 1,000 yen. Net exports from Japan will be trillion yen. Based on the data from the previous two parts of this problem, use the blue line (circle symbol) to plot net exports for Japan as a function of the price of yen on the following graph. (Note: Select and drag the curve from the palette to the desired position on the graph.) PRICE OF YEN (Delers per 1,000 yan) YEN (Trillon) NX from Japan The previous graph you constructed should show that net exports from Japan would be negative if the price of yen increased to a high enough level. such as an amount greater than $10 per 1,000 yen. If you convert this price into the form typically quoted in the newspaper, this price corresponds to yen per dollar
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Transcribed Image Text:4. Deriving net exports
By definition, net exports from Japan are equal to exports from Japan minus imports into Japan. In a hypotheticall two-country world, imports into
Japan are equal to exports from the United States. So the value for net exports from Japan is equal to exports from Japani minus exports from the
United States, Graphically, at each exchange rate, the value for net exports is the horizontal distance from U.S. exports to Japanese exports.
Use the graph input tool to answer the following questions. You will not be graded on any changes you make to this graph. (Note: To avoid dealing
with decimal places, this calculator reports the price of yen in terms of dollars per 1,000 yen. That is, the price on the vertical axis is the dollar price of
a 1,000-yen note instead of a single yen. As you have already seen, a price of 8 dollars per 1,000 yen is the same as 125 yen per dollar. Once you
enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.)
EXCHANGE RATE (Dalars per 1,000 yen
Graph Input Tool
Price
$2
Exports from us.
18
(Dollars per 1,000
yen)
Exports from Japan
18
(Trillion yen)
Exports from U.S.
(Than Yen)
12
TO
NX from Japan
(Trillion yen)
16
Exports from Japan
D.
•
10 12 14 16 18 20
YEN (Trilion)
Suppose that the price of yen is $5 per 1,000 yen. Net exports from Japan will be
trillion yen
Suppose that the price of yen is $7 per 1,000 yen. Net exports from Japan will be
trillion yen.
Based on the data from the previous two parts of this problem, use the blue line (circle symbol) to plot net exports for Japan as a function of the price
of yen on the following graph. (Note: Select and drag the curve from the palette to the desired position on the graph.)
PRICE OF YEN (Delers per 1,000 yan)
YEN (Trillon)
NX from Japan
The previous graph you constructed should show that net exports from Japan would be negative if the price of yen increased to a high enough level.
such as an amount greater than $10 per 1,000 yen. If you convert this price into the form typically quoted in the newspaper, this price corresponds to
yen per dollar
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