1. Residents and businesses of the US are asked to boycott goods made in Iran due to political tensions between the two countries. Besides oil, the US receives plastics, iron, fruits and vegetables, salt, and copper from Iran. Graph the Dollar and Iranian Rial markets as a result of the boycott.

1. Residents and businesses of the US are asked to boycott goods made in Iran due to political tensions between the two countries. Besides oil, the US receives plastics, iron, fruits and vegetables, salt, and copper from Iran. Graph the Dollar and Iranian Rial markets as a result of the boycott.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Topics 6.2-6.5
New Currency Problems.
Each of the determinants is used once.
1. Residents and businesses of the US are asked to boycott goods made in Iran due to political
tensions between the two countries. Besides oil, the US receives plastics, iron, fruits and
vegetables, salt, and copper from Iran. Graph the Dollar and Iranian Rial markets as a result
of the boycott.
What happens to future US exports to Iran after the currency values change?
2. Assume that the US does go into a mild recession. Assume that the Euro zone avoids a
similar recession and continues its growth rate. Graph the Dollar and Euro markets. From
the US perspective.

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