Macroeconomics
20th Edition
ISBN: 9781308149929
Author: McGraw-Hill
Publisher: MCG/CREATE
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Question
Chapter 16.6, Problem 4QQ
To determine
Impact of appreciation of dollar.
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Students have asked these similar questions
Q3-8
Appreciation of the domestic currency will
Select one:
a. increase domestic aggregate demand.
b. decrease domestic aggregate supply.
c. decrease domestic aggregate demand, and possibly increase domestic aggregate supply.
d. cause a deterioration in the trade balance, but have no effect on aggregate supply or demand.
Last week, 6 swedish kroner could purchase one U.S. dollar. This week, it takes 8 to purchase one U.S. dollar. this change
U.S. aggregate demand.
in the value of the dollar will
exports from the U.S. sweden and
1. decrease; increase
2. increase; increase
3. increase; decrease
4. decrease; decrease
What is the impact of the fall in Canadian interest rates?
a.
an appreciation of the dollar and smaller net exports
b.
a depreciation of the dollar and greater net exports
c.
an appreciation of the dollar and greater net exports
d.
a depreciation of the dollar and smaller net exports
Chapter 16 Solutions
Macroeconomics
Ch. 16.1 - Prob. 1QQCh. 16.1 - Prob. 2QQCh. 16.1 - Prob. 3QQCh. 16.1 - Prob. 4QQCh. 16.5 - Prob. 1QQCh. 16.5 - Prob. 2QQCh. 16.5 - Prob. 3QQCh. 16.5 - Prob. 4QQCh. 16.5 - Prob. 1QQCh. 16.5 - Prob. 2QQ
Ch. 16.5 - Prob. 3QQCh. 16.5 - Prob. 4QQCh. 16.6 - Prob. 1QQCh. 16.6 - Prob. 2QQCh. 16.6 - Prob. 3QQCh. 16.6 - Prob. 4QQCh. 16 - Prob. 1DQCh. 16 - Prob. 2DQCh. 16 - Prob. 3DQCh. 16 - Prob. 4DQCh. 16 - Prob. 5DQCh. 16 - Prob. 6DQCh. 16 - Prob. 7DQCh. 16 - Prob. 8DQCh. 16 - Prob. 1RQCh. 16 - Prob. 2RQCh. 16 - Prob. 3RQCh. 16 - Prob. 4RQCh. 16 - Prob. 5RQCh. 16 - Prob. 6RQCh. 16 - Prob. 7RQCh. 16 - Prob. 8RQCh. 16 - Prob. 9RQCh. 16 - Prob. 1PCh. 16 - Prob. 2PCh. 16 - Prob. 3PCh. 16 - Prob. 4PCh. 16 - Prob. 5PCh. 16 - Prob. 6PCh. 16 - Prob. 7P
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Similar questions
- Assume that the government decreases its spending on discretionary budget programs. All else constant, how will the change in national income affect U.S. demand for imported goods and thus the value of the dollar? Demand for imports will be unchanged; the dollar will appreciate. Demand for imports will decrease; the dollar will depreciate. Demand for imports will decrease; the dollar will appreciate. Demand for imports will increase; the dollar will depreciate. Demand for imports will increase; the dollar will appreciate.arrow_forwardA3) Finance What happens to the value of the dollar if the bank of japan increase its money supply and lower interest rates? How will this impact the value of the dollar, exports, and imports, AD and GDP?arrow_forwardThe value of the U.S. dollar typically increases when the (select all that apply) A. global economy is strong. B. U.S. economy is strong. C. global economy is weak. D. U.S. economy is weak.arrow_forward
- The currency of the United States is: a. backed dollar for dollar by gold. b. backed by a gold cover of 50 percent. c. not backed by any precious metal. d. backed by the government's silver reserves. e. backed by the government's gold and silver reservesarrow_forwardThe wealth effect stems from the idea that a higher price levela. increases the real value of households’ money holdings.b. decreases the real value of households’ money holdings.c. increases the real value of the domestic currency in foreign-exchange markets.d. decreases the real value of the domestic currency in foreign-exchange markets.arrow_forward2. Suppose GDP is $10,000 trillion, taxes are $1,500 trillion, consumption is $6,000 trillion, and government expenditure is $1,700 trillion. Investment is a function of the interest rate such that it is represented by the following equation (in trillions): 3,300 Where is the world real interest rate, expressed as a percentage. Use this information to calculate private savings, public savings, and national savings. I = - 100 * iarrow_forward
- 1) Consider a large open economy that engages in a fiscal contraction. In response to this policy change, what will happen to (a) national savings (b) the real rate of interest (c) net capital flows (d) the real exchange rate and (e) net exports?arrow_forwardExplain the effects of a fall in the value of the UK pound and lower spending by businesses and households on U.K. aggregate demand and aggregate supply The fall in the value of the U.K. pound OA. decreases U.K exports and increases U.K. imports, decreases OB. increases UK exports and decreases UK imports, increases C. increases UK exports and decreases U.K. imports, does not change D. has no influence on U.K. exports or UK imports, does not change which aggregate demand. USarrow_forwardQuestion 22 The aggregate quantity of goods and service demanded changes as the price level falls because O a. real wealth rises, interest rates rise, and the dollar appreciates. b. real wealth rises, interest rates fall, and the dollar depreciates. c. real wealth falls, interest rates rise, and the dollar appreciates. d. real wealth falls, interest rates fall, and the dollar depreciates.arrow_forward
- 59 please quikcly thanks ! If the Bank of Canada raises its target for the overnight interest rate from 3 percent to 3.25 percent while interest rates in other countries do not change, the result is _____ of financial capital, _____ in demand for Canadian dollars and _____ of the Canadian dollar. a.An outflow; an increase; an appreciation. b.An inflow; an increase; a depreciation. c.An inflow; an increase; an appreciation. d.An outflow; a decrease; a depreciation. e.An inflow; a decrease; a depreciation.arrow_forwardWhen an economy's saving is greater than its domestic investment, it implies that: a Net Capital Outflow (NCO) is positive. b Net Capital Outflow (NCO) is negative. c Net Exports (NX) are negative. d There is a trade deficit.arrow_forwardGiven the following economic information for Country A (in RM billion): Saving (S) = –500 + 0.3Yd Investment (I) = 400 – 200r Government spending (G) = 500 Taxes (T) = 200 Nominal money supply (Ms ) = 4000 Money demand for transactions (Md t/P) = 0.2Y Money demand for speculations (Md s) = 1600 – 500r Price (P) = 2 di mana Y dan r adalah masing-masing mewakili tingkat pendapatan dan kadar bunga. where Y and r represent the levels of income and interest rate, respectively. Based on the above information, i) . Derive an expression for the IS and LM curve (four decimal point) in Y says. ii) . Calculate the equilibrium levels of income and interest rate (three decimal point).arrow_forward
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