Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Chapter 11, Problem 3MC
To determine
Devaluation.
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If the Chinese yuan devalues relative to the U.S. dollar, then
Group of answer choices
U.S. producers and Chinese consumers will benefit.
U.S. producers will benefit and Chinese consumers will hurt.
U.S. producers will be hurt and Chinese consumers will benefit.
U.S. producers will be hurt and Chinese consumers will be hurt.
U.S. consumers will be hurt and Chinese producers will be hurt.
If the Japanese yen appreciates against the U.S. dollar
a. Americans should find Japanese goods are now less expensive
b. Japanese residents would find Japanese goods are relatively less expensive than American goods
c. U.S. goods should have an easier time competing against Japanese goods in both countries
d. Japanese goods should have an easier time competing against U.S. goods in both countries
1. the general agreement on tariffs and trade is an international agreement
a. to encourage world trade by lowering tariffs and other trade barriers
b.between the US and japan that has never been ratified resulting in several trade wars with japan
c.to encourage world trade by lending resources to developing countries
d.that outlaws all tariffs but permits quotas
2. assume the US government wants to hold the value of the dollar at $1=10 chinese yuan, but it finds that the value of
yuam is depreciating against the US dollar. what would be an appropriate policy to reverse this trend?
a. buy US dollars
b.sell US dollars
c.increase the money supply in the US
d.increase government spending within the US
7. flexible exchange rates are determined by
a. the foces of supply and demand.
b. the government of the importing country
c.the government of the exporting country
d.the IMF
8. the difference between the exports and imports of goods in a country is refered to as the
a. balance of power…
Chapter 11 Solutions
Managerial Economics: A Problem Solving Approach
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- The graph shows the demand curve for U.S. dollars. Draw a new demand curve that shows the effect of an increase in the world demand for U.S. exports. Label it. A change in the expected future exchange rate changes the demand for U.S. dollars and a change in the world demand for U.S. exports changes the demand for U.S. dollars A. today; in the future B. in the future; today C. in the future; in the future D. today; today 160 140- 120- 100- 80- 60- 40+ Exchange rate (yen per U.S. dollar) Do 1.3 1.5 1.6 1.7 1.4 Quantity (trillions of U.S. dollars per day) >>> Draw only the objects specified in the question. 1.8arrow_forwardSuppose U.S. dollar appreciates versus the Euro. Then we should expect: a. U.S. export to European Union rise b. U.S. import from European Union decline c. Both U.S. export and import decline d. U.S. export to European Union declinearrow_forwardYear 2014 2015 2016 US $ $1 $1 $1 British Pound 0.85 0.70 0.60 Based on the Exchange rates above, How might international trade be affected? A)It is cheaper for American to travel to EnglandB)The US will import more from EnglandC)England will export more to the USD)England will import more from the USarrow_forward
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