EBK ECONOMICS FOR TODAY
9th Edition
ISBN: 8220101414250
Author: Tucker
Publisher: Cengage Learning US
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Question
Chapter 28, Problem 10SQP
(a):
To determine
The direction of shift in the supply curve and demand curve of dollar, factor causing the change and movement in equilibrium.
(b):
To determine
The direction of shift in the supply and demand curve, factor causing the change and movement in equilibrium due to Country U’s recession and
(c):
To determine
Impact of accelerated inflation in Country U while others face constant level of inflation.
(d):
To determine
Impact of increased real interest rate in Country U’s compared to other countries.
(e):
To determine
Impact of quota and high tariff on Country U’s exports by Japan.
(f):
To determine
Impact of increased tourism from Country U’s due to fare war among airlines.
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Students have asked these similar questions
a. If the exchange rate changes from $1.70 per British pound (₤1) to $1.68 per ₤1, has the pound (₤) appreciated or depreciated? Has the dollar appreciated or depreciated?
b. What happens to the ₤-price that British residents pay for a $500 U.S. export good due to the exchange rate change above?
c. What happens to the $-price that U.S. residents pay for a ₤1200 import good from Britain?
d. How do these changes affect the economic welfare of U.S. exporters and U.S. importers?
2. a. If the exchange rate changes from $1.70 per British pound (₤1) to $1.72 per ₤1, has the pound (₤) appreciated or depreciated? Has the dollar appreciated or depreciated?
b. What happens to the ₤-price that British residents pay for a $500 U.S. export good due to the exchange rate change above?
c. What happens to the $-price that U.S. residents pay for a ₤1200…
For each of the following situations, indicate the direction of the shift in the supply curve or the demand curve for dollars, the factor causing the change and the resulting movement of the equilibrium exchange rate for the dollar in terms of foreign currency.
1. American- made cars become more popular overseas
2. The United States experiences recession, while other nations enjoy economic growth.
3. Inflation rate accelerates in the United States, while inflation rates remain constant in the other nations.
4. Real interest rates in the United States rise, while real interest rates abroad remain constant.
5. The Japanese put quotas and high tariffs on all imports from the United States.
A decrease in Chinese demand for U.S. dollars over the past year has reduced the market equilibrium exchange rate of the dollar from 10 yuan per dollar to 6.5 yuan per dollar. Other things being equal, which of the following is a likely consequence of this kind of change in the exchange rate of the dollar?
a.
A higher price of exported U.S. products in Chinese for those paying in yuan, which leads to a deficit in the net export.
b.
A lower price for imported Chinese products in the U.S. for those paying in dollars, which leads to a surplus in the net export.
c.
A higher price for imported Chinese products in the U.S. for those paying in dollars, which leads to a deficit in the net export.
d.
Both (a) and (c)
Chapter 28 Solutions
EBK ECONOMICS FOR TODAY
Ch. 28.4 - Prob. 1GECh. 28.6 - Prob. 1GECh. 28 - Prob. 1SQPCh. 28 - Prob. 2SQPCh. 28 - Prob. 3SQPCh. 28 - Prob. 4SQPCh. 28 - Prob. 5SQPCh. 28 - Prob. 6SQPCh. 28 - Prob. 7SQPCh. 28 - Prob. 8SQP
Ch. 28 - Prob. 9SQPCh. 28 - Prob. 10SQPCh. 28 - Prob. 11SQPCh. 28 - Prob. 1SQCh. 28 - Prob. 2SQCh. 28 - Prob. 3SQCh. 28 - Prob. 4SQCh. 28 - Prob. 5SQCh. 28 - Prob. 6SQCh. 28 - Prob. 7SQCh. 28 - Prob. 8SQCh. 28 - Prob. 9SQCh. 28 - Prob. 10SQCh. 28 - Prob. 11SQCh. 28 - Prob. 12SQCh. 28 - Prob. 13SQCh. 28 - Prob. 14SQCh. 28 - Prob. 15SQCh. 28 - Prob. 16SQCh. 28 - Prob. 17SQCh. 28 - Prob. 18SQCh. 28 - Prob. 19SQCh. 28 - Prob. 20SQ
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