Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 9, Problem 13E
To determine
(a)
To write:
The effect of French government imposing restriction on French imports of US goods on the US export function.
To determine
(b)
To write:
The impact of rise in US
To determine
(c)
To write:
The impact of fall in foreign income on the US export function.
To determine
(d)
To write:
The impact of depreciation of dollar on the foreign exchange market on the US export function.
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Suppose a country imposes an import tariff (as a topical real-world example, think about the U.S. under
President Donald Trump imposing tariffs on China and a host of other countries). Answer the following
questions and
1. What is the effect on imports, exports, and net exports?
2. What is the effect on net foreign investment and the exchange rate?
Discuss which of the following fall into the categories of consumption, investment, government expenditure and net exports from the Y = C + I + G + NX (X – M) identity, and whether the impact is to increase or decrease GDP.
a. Charles buys a second-hand textbook from Tim.
b. When Charles bought the book, he paid Sarah $10 to collect it from Tim
c. Thomas buys a new house
d. Your firm sells meat to Indonesia
e. The fish and chips shop down the road buys fish to make meals for diners
f. The same shop buys a deep fryer to fry fish for meals.
Using the data given in Table 1, compute the net exports. Briefly discuss your result and indicate whether there is a trade surplus or a trade deficit in the current account.
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