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: 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: 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: 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: 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: 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: 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…