Figure 13.2. The U.S. Market for Imported Toyotas MR D Q₂Q Imported Toyotas MC₂ MC₂ In Figure 13.2, D represents the U.S. demand curve for Toyotas and MCo represents the marginal cost of producing Toyotas. A shift in the marginal cost curve from MCo to MC2 represents a. an appreciation of the dollar relative to the yen. b. neither an appreciation nor a depreciation of the dollar relative to the yen. c. a depreciation of the yen relative to the dollar. d. a depreciation of the dollar relative to the yen.

Figure 13.2. The U.S. Market for Imported Toyotas MR D Q₂Q Imported Toyotas MC₂ MC₂ In Figure 13.2, D represents the U.S. demand curve for Toyotas and MCo represents the marginal cost of producing Toyotas. A shift in the marginal cost curve from MCo to MC2 represents a. an appreciation of the dollar relative to the yen. b. neither an appreciation nor a depreciation of the dollar relative to the yen. c. a depreciation of the yen relative to the dollar. d. a depreciation of the dollar relative to the yen.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: A Macroeconomic Theory Of The Open Economy

Section: Chapter Questions

Problem 4CQQ

See similar textbooks

Similar questions

change rate $1.75 1.50 1.25 1.00 200 500 S d 700 900 950 1,000 S D₂ Quantity of euros traded (millions per day) 17) Refer to Figure 30-8. The equilibrium exchange rate is at A $1.25/euro. Suppose the European Central Bank pegs its currency at $1.00/euro. At the pegged exchange rate A) there is a shortage of euros equal to 200 million. B) there is a surplus of euros equal to 700 million. Othere is a shortage of euros equal to 500 million. D) there is a surplus of euros equal to 300 million.
Q18
QUESTION 2 N Consider the exchange rate between U.S. Dollar and Mexican Peso: USD/MXN. If the supply curve for USD shifted from 100+e to 104+eN bln dollars per week and the demand curve shifted from bln dollars per week, then the exchange rate changed by 140-e - eN to 142-eN percent. Note: Type in your answer rounded to two decimal places, i.e., your answer must be of the form "999.99". I will not be able to fix correct answers that were entered incorrectly, such as "999.999" or "999,99" or "999". In case the last digit in the correct answer is zero, e.g., "999.90" or "999.00", Blackboard may automatically delete it and you should not do anything about it. In case of percentages, do not type in the percentage symbol "%". If your answer is a negative number, type a dash in front of your answer, i.e, "-999.99".
A10
If the U.S. Congress imposes a quota on imports of Japanese cars due to claims of "unfair" trade practices, and Japanese demand for American exports increases at the same time, then, inthe long run ________, everything else held constant.a) the Japanese yen will appreciate relative to the U.S. dollarb) the Japanese yen will depreciate relative to the U.S. dollarc) the Japanese yen will either appreciate, depreciate or remain constant against the U.S. dollard) there will be no effect on the Japanese yen relative to the U.S. dollar
None
None
Given the demand and supply curves for dollars (in terms of the South African rand) in the foreign exchange market. The outbreak of the Corona virus causes the South African Rand to: Select one: a. Depreciate as the supply curve of USD shift to the left b. Appreciate as the demand curve for USD shift to left c. Depreciate as the supply curve of USD shift to the right d. Appreciate as the demand curve for USD shift to right e. Remain the same Reason:
Give typing answer with explanation and conclusion Consider the exchange rate between U.S. Dollar and Mexican Peso: USD/MXN. Initially, the supply curve for USD is 100 + eN bln dollars per week and the demand curve is 140 - eN bln dollars per week. There is a financial crisis in Mexico and the government fears that it may lead to capital outflows that would make the crisis even worse. They decide that if Mexican Peso depreciates by more than 20% the central bank will step in and fix the exchange rate. As the crisis unfolds the demand for the U.S. dollars increases to 142 - eN and the supply of dollars falls to 99 + eN. How should the central bank of Mexico react to this change?
The demand for Australian dollars in the foreign exchange market equals 12000 - 2000E and the supply of Australian dollars in the foreign exchange market equals 3000 + 3000E, where E is the nominal exchange rate expressed in yen per Australian dollar. If the Australian dollar is fixed at 3 yen per Australian dollar, then to maintain this fixed rate, what is the required change in the Reserve Bank of Australia's holdings of yen? O decrease by 18000 yen decrease by 2000 yen O increase by 2000 yen O increase by 18000 yen
S 2
Given the demand and supply curves for dollars (in terms of the South African rand) in the foreign exchange market. The outbreak of the Corona virus causes the South African Rand to: Select one: a. Depreciate as the supply curve of USD shift to the left b. Appreciate as the demand curve for USD shift to left Depreciate as the supply curve of USD shift to the right d. Appreciate as the demand curve for USD shift to right e. Remain the same Reason: II O