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- 4) Suppose the price level in India is 9,500, the price level in the United States is 140, and the price level in Brazil is 750. Suppose the current nominal exchange rates are 75 Indian rupee per dollar and 5 Brazilian real per dollar. Calculate the real exchange rates (rounded to two decimal places) between each pair of countries. Note that you will have to first calculate the nominal exchange rate between Brazil and South India before calculating the real exchange rate between those two countries. (423. Capital inflows in the Trinidad and Tobago balance of payments accounts include a. purchases of financial assets by T&T residents. b. direct investments in foreign countries. c. indirect investments in foreign countries. d. purchases of T&T government bonds by foreigners. A supply of foreign exchange occurs in the United States when a. a U.S. citizen wants sells stock on a European stock exchange. b. the United States exports steel to Japan. c. United States citizens travel abroad. d. All of the above1. What explains how the dollars per euro exchange rate will change in the future if the exchange rate is wxpected to rise. 2. What is addressed by the USMCA? 3. Country A has a GDP of 60,000,000 and country B has a per capita of 2,000. If the populations of countries a and b are 40,000 and 20,000 respectively, which country is most developed based on per capita GDP? 4. how can a difference in Gini coefficients for the United States and china be interpreted 5. which of the following trends have followed globalization?
- ! Who benefits from an appreciation of the Swiss Franc? Who benefits from a depreciation of the Swiss Franc? Why would the Swiss government be concerned about a strong appreciation of the Swiss Franc?Question 38 If you go to the bank and notice that a dollar buys more Ghanaian cedis than it used to, then the dollar has appreciated. Other things the same, the appreciation would make Americans less likely to travel to Ghana. O appreciated. Other things the same, the appreciation would make Americans more likely to travel to Ghana. depreciated. Other things the same, the depreciation would make Americans less likely to travel to Ghana. depreciated. Other things the same, the depreciation would make Americans more likely to travel to Ghana.II. Trade Accounts. A. The Balance on Goods and Services has been in deficit for years. Assume the U.S. has $400 of goods and services exports. Use a simple flow of trade diagram to illustrate a U.S. Balance on Goods and Services deficit of $50. Foreign. U.S. B. I have argued that the illustration above is incomplete because it requires foreigners to hold American dollars for years and years. This seems unlikely. Use another flow of trade diagram to show how a deficit in the Balance of Goods and Services can be offset somewhere else in the trade accounts. U.S. Foreign. C. A Canadian furniture maker with plants in Canada and the United States, sells $100,000 worth of furniture made in Canada to Americans. They use the money from the sale to purchase $100,000 worth of furniture quality lumber from American suppliers to be used in their Canadian plant. How do these two transactions affect the Balance on Goods and Services? Give a number D. A Canadian furniture maker with plants in…
- 1. Imports, exports, and the trade balanceThe following table shows the approximate value of exports and imports for the United States from 1997 through 2001.Complete the table by calculating the surplus or deficit both in absolute (dollar) terms and as a percentage of GDP. If necessary, round your answers to the nearest hundredth.YearGDPExportsImportsExports – Imports(Billions of dollars)(Billions of dollars)(Billions of dollars)(Billions of dollars)(Percentage of GDP)19978,332.0 954.41,055.8 19988,794.0 953.91,115.7 19999,354.0 989.31,251.4 20009,952.0 1,093.21,475.3 200110,286.0 1,027.71,398.7 Source: “Income, Expenditures, Poverty, & Wealth: Gross Domestic Product (GDP),” United States Census Bureau, United States Department of Commerce, last modified September 2011, accessed June 10, 2013, https://www.census.gov/library/publications/2011/compendia/statab/131ed/income-expenditures-poverty-wealth.html. Between 1997 and 1998, the in dollar terms and as a percentage of GDP.1. Other things equal, what is the likely impact of a U.S. trade deficit on 1. the current account? 2. foreign savings if domestic investment is greater than domestic saving? 3. foreign savings if domestic investment is less than domestic saving?Question One Provide short answers: Assume the consumer price index in France rises from 250 at the end of the year to 265 at the end of the next year, how much inflation was there in France during that year? Describe the difference between a price level and a price index. Outline the theory of absolute purchasing power parity. During our discussion of absolute purchasing power parity we frequently referred to the law of one price. Write a short note on the logic of the law of one price and consider why this condition may be violated.
- Other things equal, if the United States continually runs trade deficits, foreigners will own U.S. assets. a. More and more. b. Less and less. c. The same amount of.D Question 4 If the US$ is stronger, that helps to do what in regards to the US trade deficit O Increase O Decrease O Create a balance of payments surplus O Decreases trade with the weaker currencyQuestion: A- Turkey has a flexible exchange rate regime. Discuss in detail what the effects of an expansionary fiscal policy would be on output levels under this regime.How do you think the effects of such a policy would differ under a fixed exchange rate regime? B- Turkey has a flexible exchange rate regime. Assuming perfect capital mobility, do you think it is possible to control the interest rate and the exchange rate at the same time? Please discuss in detail and explain why or why not.