Question: How is this likely to affect economiesthat are heavily dependent on oil imports?a) Decrease in inflationb) Increase in their trade deficitsc) Increase in their exportsd) Decrease in their current account deficits

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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15. Background information and a news article Does the exchange rate between the yen and the dollar affect prices and corporate profits? Should prices be in dollars per yen or yen per dollar? How do exchange rates affect exports to and from a country? The following 2017 article from Asian Review sheds light on these questions. Read the article and then answer the questions that follow. EXCHANGE RATES, PRICE INCREASES HOLD KEY TO PROFIT GROWTH IN JAPAN TOKYO - With earning season set to go into full swing next week, investors are paying attention to guidance for the current year. The following is what you should focus on to figure out if a company is expected to see net profits continue to grow in fiscal 2017. Assumed exchange rates can greatly change a company's earnings forecast. Analysts at Daiwa Securities, a brokerage, will mainly use a yen exchange rate of 115 to the dollar and 120 to the euro for fiscal 2017 earnings predictions. Using those rates, major companies' net profit…
How a devaluation may reduce the trade deficit of a country? What condition is required to reduce trade deficit? If this condition is not met , what type of effect may arise?
What will happen to the US trade deficit if the US is in a recession while our trading partners are strong
A trade deficit occurs when a country: A) Has higher exports than imports B) Has higher imports than exports C) Implements strict import quotas D) Lowers tariffs on all imports
National Saving - Investment = X - IM A country whose National Saving is greater than its Investment will experience a Trade deficit (IM > X) Balanced trade (IM – X) = 0 O Trade surplus (X > IM)
The macroeconomic view of a trade deficit implies that, other things equal, the imposition of a tariff will reduce South Africa's trade deficit A. Because exports will be promoted and imports cannot possibly change B.Because imports will be reduced and exports cannot possibly change C.Only if the tariff has no impact on South Africa's spending or income D.Only if the tariff leads to increased income in South Africa relative to its spending
QUESTION 9 As a result of entering the world economy, Neverland experiences economic boom and its GDP goes up to y= 13250: The functions that describe consumption and investment are still the same: cd(r) = 5000 – 1000r+ 0.25Y and Id(r) = 500 – 1800r +0.2Y. The government wants to take advantage of growth and increases its expenditures to: G- 1000: What is Neverland's current account balance? Note: Type in your answer approximated to two decimal points, 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 will automatically delete it and you should not do anything about it.
Explain the impact on US export and import if the US dollar has depreciated in comparison with other currencies. For example, the exchange rate for the Canadian dollar was 1.36 per U.S dollar in 2003. Now in 2020, it is 1.31 Canadian dollars per U.S.dollar under this case the dollar has suffered a slight depreciation. Also, when the dollar has depreciated in the case of the Chinese Yuan from 8.27 in 2003 to 6.69 yuans in 2020 per U.S dollar. Also, when there is not either appreciation or depreciation from 2003 to 2020 which is the case of Saudi Arabia currency its exchange rate remains the same 3.75 Riyals per dollar since 2003. Then explain the impact of U.S. exports and imports under these scenarios.
Question: What is the term for a situation where a country exports more goods and services than it imports? A) Trade deficit B) Current account surplus C) Budget deficit D) Fiscal surplus
eBook Problem 6-03 Consider the following information: Imports Net income from foreign investments Foreign investments in U.S. Government spending abroad Exports U.S. investments abroad Foreign securities bought by U.S. U.S. securities bought by foreigners Purchase of short-term foreign securities Foreign purchases of U.S. short-term securities $244.0 73.4 8.9 4.0 170.7 21.2 5.2 2.5 5.8 8.7 Determine the balance on the U.S. current account and capital accounts. Use a minus sign to enter the amount as a negative value. Round your answers to one decimal place. Balance on current account: $ Balance on capital account: $
(a) Distinguish between a government deficit and trade deficit? F7 F8 F9 F10 F11 F12 7 8
provide full solution and explaination

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Question: How is this likely to affect economies that are heavily dependent on oil imports? a) Decrease in inflation b) Increase in their trade deficits c) Increase in their exports d) Decrease in their current account deficits