5. In the following diagram D€ is the US demand curve for Euro and S€ is the US supplycurve for Euro. If the exchange rate of Euro is US$1.5/€ then which of the following is true.$/€1.5D€LO51014SeA)B)US has a balance of trade deficit of 4 billion EuroUS has a balance of trade surplus of 5 billion EuroUS has a balance of trade deficit of 2 billion EuroC)D)US has a balance of trade surplus of 9 billion EuroAnswer:Q€ (billions) 6. The price elasticity of the US demand for imports in euros is given by:E) the percentage change in the quantity demanded of imports by US consumersdivided by the percentage change in the quantity demanded of US exports by EuropeanconsumersF) the percentage change in the quantity demanded of imports by US consumersdivided by the percentage change in the price of the US imports in eurosG) the percentage change in the quantity demanded of US exports by Europeanconsumers divided by the percentage change in the quantity demanded of imports by USconsumersH) the percentage change in the price of European exports divided by the percentagechange in the price of the US imports in euros.Answer:

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5. In the following diagram D€ is the US demand curve for Euro and S€ is the US supply curve for Euro. If the exchange rate of Euro is US$1.5/€ then which of the following is true. $/€ 1.5 A) B) C) D) De 5 10 14 Se US has a balance of trade deficit of 4 billion Euro US has a balance of trade surplus of 5 billion Euro US has a balance of trade deficit of 2 billion Euro US has a balance of trade surplus of 9 billion Euro Answer: Qe (billions)

5. In the following diagram D€ is the US demand curve for Euro and S€ is the US supply curve for Euro. If the exchange rate of Euro is US$1.5/€ then which of the following is true. $/€ 1.5 A) B) C) D) De 5 10 14 Se US has a balance of trade deficit of 4 billion Euro US has a balance of trade surplus of 5 billion Euro US has a balance of trade deficit of 2 billion Euro US has a balance of trade surplus of 9 billion Euro Answer: Qe (billions)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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