21. If the exchange rate changes from 1 United States dollar = 100 yen to 1 United States dollar = 80 yen, which of the following will happen? * %3D United States goods will become more expensive to Japanese consumers. Japanese goods will become less O expensive to United States Cic consumers. Japanese imports from the United States will decrease. increase. United States exports to Japan will

21. If the exchange rate changes from 1 United States dollar = 100 yen to 1 United States dollar = 80 yen, which of the following will happen? * %3D United States goods will become more expensive to Japanese consumers. Japanese goods will become less O expensive to United States Cic consumers. Japanese imports from the United States will decrease. increase. United States exports to Japan will

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the exchange rate between the U.S. dollar and the Japanese yen were such that one U.S. dollar equals 100 yen, what would be the price in dollars of a Japanese automobile that cost 2,000,000 yen? A. $100 B. $20,000 C. $120,000 D. $2,000,000
Suppose that a firm is considering opening a plant on the moon, and the current exchange rate is 1,280 moon pieces (mp) per dollar. Also, the wage rate is 22,800 mp per hour. Suppose further that Question Viewer an produce 240 units per hour, while workers on the moon are expected to be able to produce 380 units per hour (the lower gravity level helps them work faster). a. The moon wage rate without considering productiviy is $ /hr (round your response to the nearest penny). b. The moon "relative" wage rate considering productivity is $/hr (round your response to the nearest penny). c. Suppose that the U.S. wage rate is $23.50 per hour. If the U.S. managers want to become the location of choice for production, and if they cannot lower their wage rate due to labor union agreements, what does the labor productivity in the U.S. need to become? The labor produtivity in the U.S. needs to be at least units/hr (round your response to one decimal place).
What is the difference between depreciation and devaluation? O There is no difference. O Depreciation refers to a fixed exchange rate, while devaluation refers to a floating exchange rate. O Depreciation refers to a floating exchange rate, while devaluation refers to a fixed exchange rate.
Complete the sentence. The quantity of Canadian dollars supplied in the foreign exchange market depends on O A. the demand for Canadian dollars in the foreign exchange market O B. decisions of the Bank of Canada O C. the exchange rate O D. the price of gold
As the value of the American dollar increases relative to the Mexican peso, we expect that international demand for American corn output relative to Mexican corn may а. increase decrease b. stay the same as international corn demand is independent of the exchange rates С. we cannot tell Od.
Table 6 United States France Peas $3 3 euros Carrots $4 9 euros
Question 2 of 25 In which situation is a country most likely to choose a flexible exchange rate for its currency? O A. A country believes that its currency will be in low demand in global markets. B. A country worries that the value of its currency could rise and fall unpredictably. C. A country has a reputation for having a strong and stable economy over time. O D. A country wants to make sure that its currency is stable in all economic situations.
A 216.
QUESTION 22 3 pol Suppose that • The Elasticity of Imports in the USA in the short Run is 0.5 • The Elasticity of Imports in Japan in the short Run is 0.6 • The Elasticity of Imports in the USA in the long Run is 0.9 The Elasticity of Imports in the Japan in the long Run is 1 According to the Elasticities approach to the Current Account Balance, if the Exchange Rate goes from Yen=$1/100 to Yen $1/50 . O The Current Account Balance will be unchanged • The Current Account Balance in the US will deteriorate in the short run, and improve in the long run O The Current Account Balance in the US will deteriorate in the short run and in the long run O The Current Account Balance in the US will improve both in the short run and in the long run
Using Demand and Supply Analysis. Use the line drawing tool to show the effects of an increase in Japanese interest rates on the exchange rate between the British pound and the Japanese yen. ¥ The vertical axis will be yen per pound, I Draw and properly label a single line. Carefully follow the instructions above, and only draw the required object. 400- 350- 300- 250- 200- 150- 100- 50- The Market for Pounds Yen per Pound A Pounds SE DE Q
Which of the following will most likely cause a nation's currency to appreciate on the foreign exchange market? a. A decrease in domestic interest rates O b. An increase in foreign interest rates c. Stable domestic prices while the nation's trading partners are experiencing 10 percent inflation O d. Domestic inflation of 10 percent while the nation's trading partners are experiencing stable prices
Only like if no ai or downvoted for ai content Suppose that the equilibrium exchange rate between the United States and South African is 15.13 Rand per US dollar. Further suppose that the two countries are trading partners with each other. Inflation now rises in South Africa. Which of the following answer choices correctly represents the shift that would occur in the US foreign exchange market? The supply of US dollars would fall. The demand for South African Rands would rise. The supply of South African Rands would rise.