In the picture below is the full question. The highlighted one is my guess which is wrong. If the U. S. dollar appreciates in the foreign exchange market, what is the most likely change in the balance of trade? A)Trade deficit B)Trade surplus C)Balanced trade D)No change

Q: The graph shows the demand curve for U.S. dollars. Draw a new demand curve that shows the effect of…

A: The relationship between the cost of an item or service and the quantity demanded over a specific…

Q: People sometimes worry that American trade with other countries will lead to large U.S. trade…

A: The answer is - a) have both current account and financial account deficits at the same time.

Q: The following table shows the approximate value of exports and imports for the United States from…

A: Balance of trade or trade balance represents the difference between the values of export and import.…

Q: trade surplus (exporting more than importing) and trade deficit (importing more than exporting) on…

A: The ‘balance of trade’ (BOT) is the sum of a country's import and export.   The BOT is positive(+)…

Q: Explain how changes in various economic factors affect a country's current account balance.

A: The current account balance of a country exhibits its transactions with the rest of the world. It is…

Q: Suppose there is a country "A", the currency of A is "X". Suppose that for some reason, the world's…

A: The exchange rate is defined as the price of a nation's domestic currency in terms of another…

Q: International Finance and the Exchange Rate-End of Chapter Problem At a family gathering, one of…

A: The twin deficit scenario occurs when a country experiences both a budget shortfall and a current…

Q: Why does the trade balance and the current account balance track so closely together over time?

A: Trade is the exchange of goods and services between the buyer and seller. When the buyers and…

Q: If an economy has a widening trade deficit, which of the following monetary policy option will…

A: A trade deficit happens when there is a negative net sum or negative equilibrium in a worldwide…

Q: Which of the following statements is NOT CORRECT regarding a country's current account? Higher…

A: Imports are the quantity of goods and services purchased by the home country from the foreign…

Q: View the data on the trade balance below. Then answer the questions that follow.   Is the United…

A: (1). The United States is currently in a trade deficit situation because the values of trade balance…

Q: Capital flight is the sudden large drop in demand for domestic assets. Explain the following: if we…

A: Capital flight is the flow of domestic financial resources to foreign countries. The capital flight…

Q: What happens to the balance of trade if the nominal exchange rate depreciates?

A: According to the Marshall-Lerner condition if the exchange rate of a country depreciates it means…

Q: Why is it important for the balance of payments to balance in the long run?

A: Balance of Payment of a country is the summary of all economic transactions of the country with the…

Q: The following graph depicts the supply and demand curves for U.S. dollars in the foreign exchange…

A: The exchange rate is the rate at which one currency can be exchanged for another. It represents the…

Q: Describe the foreign exchange market and its components.

A: Foreign exchange market- it is a market, which is also known as forex and currency market. It is a…

Q: If the U.S. dollar appreciates 30 percent, a U.S. manufacturer experiences decrease/ increase in…

A: Currency depreciation is the loss of value of a country's currency with respect to one or more…

Q: In a recession, the trade balance often improves because

A: Recession is a term used to describe a slowdown in the economy that persists over a few months.…

Q: 2008, a small country imported goods worth $400 billion and exported goods worth $245 billion. It…

A: Balance of trade (BOT) = Value of Exports − Value of Imports Here, BOT is the Balance of trade or…

Q: The balance of trade refers to the balance of imports and exports. True or false

A: Balance of payments is the records of all the transactions of the economy with the rest of the…

Q: Which of the following would most likely be included in the positive side of the U.S. current…

A: The question given relates to the balance of payment(BOP) which means systematic record of economic…

Q: Exchange Rates Table YEAR 2014 2015 2016 US $ $1 $1 $1 Canadian $ 1.25 1.35 1.45 British Pound .85…

A: "Export occurs when goods are sold by the home country to foreign countries. Import occurs when the…

Q: Which of the following statement are true?   The U.S. economy is the largest economy in the world.…

A: Economic growth measures the increase in GDP over period of time comparing one period from another…

Q: Find the value of balance of trade when the value of exports are $16 and value of imports are $11?

A: As per the question, Value of Exports are = $16 Value of the imports = $11 Balance of trade = ?

Q: How does an increase in domestic income affect demand for imports how does a decrease in real…

A: Income refers to the money that an individual earn from his employment.

Q: Define favourable and non favorable balance of trade

A: When exports are greater than imports,it would be known as favourable balance of trade.

Q: What are the three components of the Balance of Payments? Explain the relationship between the…

A: The balance of payment (BOP) demonstrates the record of all financial proceedings over a period of…

Q: Suppose Country X experienced a decline in the trade of manufactured goods. To account for this,…

A: Trade Deficit: A trade deficit occurs when a country's imports of goods and services exceed its…

Q: yen per U.S. dollar to 71 yen per U.S. dollar. What is the effect of this change on the quantity of…

A: The cost of converting one currency for another between nations or economic zones is defined as an…

Q: Does an expectation of a stronger exchange rate in the future affect the exchange rate in the…

A: The exchange rate refers to trading account that a country charges other country for the imports and…

Q: What do you mean by balance of trade?

A: There must always be a systematic record of all the transactions which are taking place between the…

Q: Scroll down to "U.S. Trade in Goods and Services by Selected Countries and Areas, 1999 - Present"…

A: Goods, products, or services that are produced or provided within a country's borders and are sold…

Q: The following figure shows the Current Account Balance (similar to the Trade Balance) of Japan…

A: The balance of payments (BOP) is known to summarize all of the transactions which…

Q: What are the major issues with regard to trade imbalances for the U.S. economy?

A: The United States is one of the world’s strongest nations which also has an all round accepted…

Q: You work for a Nova Scotia Company trying to successfully enter the cranberry market in Australia.…

A: To comprehend the functioning and behavior of an economy or a particular market, economic analysis…

Q: Over the past four years, the US trade deficit has increased to $576.9 billion. Based on your…

A: In the face of globalization, the practice of maintaining trade deficits has become increasingly…

Q: The term “Balance of Trade” incorporates the measure of which of the following?Choose one answer.…

A: Balance of trade refers to the component in the international trade records where the transactions…

Q: Suppose balance of trade is $630 and imports of goods is $115 find the exact value of the exports of…

A: Balance of trade is gradually defined as the must value of the exports excluding the part of the…

Q: moves toward (surplus/capital) (financial) account moves toward deficit Swedish laborers working…

A: Exports have positive relationship with the current account. If exports rises current account moves…

Q: In 2001, 2002, and 2003, Congress passed the series of tax cuts that President Bush had requested.…

A: The increased consumer spending due to the tax cuts leads the country towards a larger trade…

Q: Graphically, when is the balance of trade equal to zero? Multiple Choice   When the rising IM line…

A: Export (X) remains constant at each level of GDP level.  Hence, the Export (X) curve is horizontal…

Q: According to the economic theory, growth in a country's exports results in appreciation of the…

A: A rise in the demand for the domestic currency bids up its value in the international currency…