ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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The dollar appreciated by 25% and now buys 100 yen
That would give you the old
And that would mean that the yen
And the rate of change of the exchange rate is also -20%.
Find the rate of change of the direct exchange rate of the yen in the US.
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- 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.arrow_forwardThe 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 Switzerlandarrow_forwardIf Boblandia had a flexible exchange rate, it would cost 5 Bobos to purchase a Canadian dollar. The Central Bank of Boblandia (aka, the Bank of Boblandia, or BoB) has fixed the exchange rate, saying it will buy or sell Bobos at C$0.25 for each Bobo. Which of the following is true? O At the fixed exchage rate, supply of Bobos exceeds demand. The BoB's holdings of Canadian dollars will increase. O At the fixed exchage rate, supply of Bobos exceeds demand. The BoB's holdings of Canadian dollars will decrease. O At the fixed exchage rate, supply of Bobos is less than demand. The BoB's holdings of Canadian dollars will increase. O At the fixed exchage rate, supply of Bobos is less than demand. The BoB's holdings of Canadian dollars will decrease.arrow_forward
- Suppose you observe the following exchange rates and interest rates for the USD and JPY: Bid Ask USD/JPY 105.20 105.95 USD,JPY F,360 104.25 105.10 Trader lends at Trader borrows at I USD ? ? I JPY 1.40% 1.50% Which answer is closest to the maximum US lending rate that prevents covered interest rate arbitrage? 3.21% 3.16% 3.05% 2.32% 2.42%arrow_forwardDue to the increase in the productivity of Omanis in the technology sector, the rate of exports of technological services has increased. How will this affect the value of the Omani Rial and the US dollar? a. Stronger rial and weaker dollar b. weaker rial and stronger dollar С. both currencies will increase in value d. the increase will be cancelled out by each otherarrow_forwardSee attached.arrow_forward
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