If equipment is fully tradable, so that the price in Kenyan shillings (KSh) equals the price in pounds times the market exchange rate, what is the market exchange rate? Based on its relative price, does it appear that food is tradable? Is it more or less expensive in Kenya, compared to the UK? Fill in the table above (ignoring cells with "-"). What is the UK's total GDP in GBP? What is Kenya's total GDP in KSh?

Suppose that an economy starts with a net foreign asset to GDP ratio NFA/Y equal to -0.3. After one year, the ratio of net exports to output has been 0. What will the NFA/Y ratio become after this year due to this effect? Suppose that an economy starts with a net foreign asset to GDP ratio NFA/Y equal to -30%. After one year, the real interest rate has been -10%. What will the NFA/Y ratio become after this year due to this effect?

If a French car costs 10,000 euros, a similar American car costs 15000 dollars, and a euro can buy 1.2 dollars. what is real exchange rates ( you may assume any currency as the “domestic currency”) If a French car costs 10,000 euros, a similar American car costs 15000 dollars, and a euro can buy 1.2 dollars. what is real exchange rates ( you may assume any currency as the “domestic currency”) ???

Explain why a developing country with a fixed exchange rate Explain why a developing country with a fixed exchange rate and foreign exchange controls in place (perfectly immobile capital) may find itself dependent on growth in exports, foreign investment, or foreign aid to attain economic growth. Explain why a developing country with a fixed exchange rate

QUESTION 9 As a result of entering the world economy, Neverland experiences economic boom and its GDP goes up to y= 13250: The functions that describe consumption and investment are still the same: cd(r) = 5000 – 1000r+ 0.25Y and Id(r) = 500 – 1800r +0.2Y. The government wants to take advantage of growth and increases its expenditures to: G- 1000: What is Neverland's current account balance? Note: Type in your answer approximated to two decimal points, i.e., your answer must be of the form "999.99". I will not be able to fix correct answers that were entered incorrectly, such as "999.999" or "999,99" or "999". In case the last digit in the correct answer is zero, e.g., "999.90" or "999.00", Blackboard will automatically delete it and you should not do anything about it.

Assume that the nominal exchange rate between U.S. and Mexico is: e = 10 pesos per $. The price of Tall Starbucks Latte: P = $3 in U.S.; P* = 24 pesos in Mexico.  What is the price of a U.S. latte measured in pesos? Compute the real exchange rate, measured as Mexican lattes per US latte. Interpret the real exchange rate you obtain in “B”.

You work for the Bureau of Economic Analysis (BEA) of the U.S. Department of Commerce. Your supervisor gives you the following U.S. International Transactions Accounts for the Year 20XX (figures are in billions of dollars) and wants it reported in a coherent fashion in accordance with accepted conventions: Investment income payments $24; Export of goods $456; Balance of services $57; U.S purchases of foreign assets were $147.; Imports of goods $589; Change in Official Reserves $15; Investment income receipts $28; Foreign purchases of U.S. assets were $230; Net unliteral transfers were ($32). ($32) means -$32. a)- He wants you to compute the balances of trade, current account, capital account and statistical discrepancy. b)- He also wants you to find out (based on your calculation) if the U.S. is a net debtor or a net creditor. Explain

Suppose policy makers want to increase net exports (NX) and keep output (Y) constant. Which of the following policies would most likely achieve this?   A.an increase in government spending   B.a real depreciation   C.an increase in government spending and a decrease in the real exchange rate   D.a decrease in the real exchange rate and a tax increase

The exchange rate is the price of one currency in terms of another currency. An exchange rate specifies how many units of one country's currency are needed to buy one unit of another country's currency. Suppose the following table forecasts exchange rate data for May 21, 2018, in terms of U.S. dollars per unit of foreign currency. Use the information in the table to answer the questions that follow. Foreign Currency Cost of One Unit of Foreign Currency (Dollars) Lithuanian litas (LTL) 0.3666 Canadian dollar (CAD) 0.8493 Euro (EUR) 1.3288 Mexican peso (MXN) 0.0889 United Kingdom pound (GBP) 1.8965   Suppose that on May 21, 2018, an ornamental bookcase handmade in the United Kingdom is priced at GBP 530. The approximate U.S. dollar price of the bookcase would be    .   If the exchange rate for the U.S. dollar–U.K. pound rises from $1.8965 to $2.2758 per U.K. pound, the U.S. dollar    in value, or    , relative to the U.K. pound.

QUESTION 4 Consider the following two figures. Japanese Yen per 1 uS Dollar Graph Danish Krone per 1 Euro Graph 12 Mar 2018 16:00 UTC - 11 Apr 2018 16:48 UTC 12 Mar 2018 16:00 UTC - 11 Apr 2018 16:10 UTC 107.07591 7.4648491 106, 39703 7.4552022| 1d5.1Ma16 105.03928 7.4359083. 104.36040 7.4262613 Apr9 Mar 12 Mar 12 Mar 19 Mar 26 | Apr 2 Apr 2 | Apr 9 Mar 19 Mar 26 Which of the following statements is correct? A. the left figure describes a fixed exchange rate; the right figure describes a fixed exchange rate O B. the left figure describes a flexible exchange rate; the right figure describes a flexible exchange rate C. the left figure describes a fixed exchange rate; the right figure describes a flexible exchange rate D. the left figure describes a flexible exchange rate; the right figure describes a fixed exchange rate