What does it mean when the dollar appreciates compared to when the dollar depreciates?   Has the US dollar been relatively strong or weak over the past year?   How does the strength of the dollar affect exports and imports?

Q: Describe some buyers and some sellers in the market for U.S. dollars.

A: When goods are demanded for final or intermediate consumption by the consumers then it refers to…

Q: Explain how changes in various economic factors affect a country's current account balance.

A: The current account balance of a country exhibits its transactions with the rest of the world. It is…

Q: inflation plays a major role determine whether a currency is appreciating or depreciating true…

A: The depreciation of the domestic currency against any foreign currency is generally the loss of…

Q: An exchange rate is best described as? A)The price of goods in terms of a foreign currency B)The…

A: Exchange rate is are of two types: Fixed exchange rate and Flexible exchange rate. Fixed exchange…

Q: Define long exposure and explain the relationship between the variability of the domestic currency…

A: Please find the images attached for detailed explanation

Q: If the price of one gallon of gasoline goes down from $4.07 per gallon to $3.99 per gallon, how will…

A: The history of the U.S in the context of gasoline is that the U.S. has been the major importer of…

Q: Find the value of balance of trade when the value of exports are $16 and value of imports are $11?

A: As per the question, Value of Exports are = $16 Value of the imports = $11 Balance of trade = ?

Q: How does an increase in domestic income affect demand for imports how does a decrease in real…

A: Income refers to the money that an individual earn from his employment.

Q: What impact will an appreciation of the dollar have on the relative price of foreign goods to…

A: If the dollar appreciates, then the exchange rate increases. The relative price of domestic goods…

Q: when a domestic investor buys a foreign asset, the financial account would rise, stay the same or…

A: When a domestic investor buys a foreign asset ,  the financial account status can be explained as…

Q: Does an expectation of a stronger exchange rate in the future affect the exchange rate in the…

A: The exchange rate refers to trading account that a country charges other country for the imports and…

Q: Find US net export (current account balance) and its relation with US savings and investment. Draw a…

A: The current account balance measures the difference between a country's exports and imports of goods…

Q: Which group will most likely be negatively affected if the U.S. dollar drops in value against the…

A: If the U.S. dollar drops in value against the British pound, then the British pound will get strong…

Q: For a given level of output (Yf), will the current account balance (CA) vary inversely with the…

A: Level output is the net output of an economy in a period ( generally a year). It represents the…

Q: If the value of exports are 11,000 and the value of imports are 3000 find  the balance of trade?

A: Given information:- Imports  = 3000 Exports   = 11000    Balance of trade is difference between…

Q: How does a fall in the exchange rate cause an increase in the cost of raw imported materials?

A: The import and export of a country are affected by the exchange rates.

Q: How do government budget deficits affect the exchange rate and trade balance?

A: The rate at which one country's currency can be exchanged for another country's currency is known as…

Q: If the U.S. dollar depreciates 20 percent, how does this affect the export and domestic sales of a…

A: Currency depreciation is a decrease in the currency's value. Due to factors such as economic…

Q: The term “Balance of Trade” incorporates the measure of which of the following?Choose one answer.a.…

A: International trade implies the trade that takes place beyond the national boundary. It plays an…

Q: What would happen if Mexico has a trade deficit with the US?     The demand for U.S. dollar should…

A: Meaning of Balance of Trade: The term balance of trade refers to the situation under which an…

Q: If a country's currency is depreciating, will money supply grow SLOWER or FASTER than economic…

A: Currency depreciation in the floating exchange rate, shows a decrease in the value of currency.…

Q: How does the export of Canadian goods to the US benefits the Canadian exchange rate?

A: Exports are incredibly vital to trendy economies because they provide individuals and corporations…

Q: What effect would an appreciation of the U.S. dollar, relative to the Chinese Yuan, have on both the…

A: An appreciation of the U.S. dollar relative to the Chinese Yuan will make U.S. Dollar stronger…