Explain the trade based on daily activities.

Question

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Answer 1

Question

Chapter 19, Problem 1RQ

To determine

Explain the trade based on daily activities.

Expert Solution & Answer

Explanation of Solution

If a room contains more foreign goods, it implies that the country has more import. If a room contains more domestically produced goods, it implies that the country has more export than imports. If the export is greater than imports, it will lead to an increase in the inflow of currency in the country and result in an increase in the value of currency. The increased value of currency will result in appreciation of currency.

If the import is greater than the export, it will lead to an increase in the outflow of currency in the country and will result in a reduction of the value of currency. The decreased value of currency will result in a depreciation of currency.

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Answer 2

Question

Chapter 19, Problem 1RQ

To determine

Explain the trade based on daily activities.

Expert Solution & Answer

Explanation of Solution

If a room contains more foreign goods, it implies that the country has more import. If a room contains more domestically produced goods, it implies that the country has more export than imports. If the export is greater than imports, it will lead to an increase in the inflow of currency in the country and result in an increase in the value of currency. The increased value of currency will result in appreciation of currency.

If the import is greater than the export, it will lead to an increase in the outflow of currency in the country and will result in a reduction of the value of currency. The decreased value of currency will result in a depreciation of currency.

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Answer 3

Question

Chapter 19, Problem 1RQ

To determine

Explain the trade based on daily activities.

Expert Solution & Answer

Explanation of Solution

If a room contains more foreign goods, it implies that the country has more import. If a room contains more domestically produced goods, it implies that the country has more export than imports. If the export is greater than imports, it will lead to an increase in the inflow of currency in the country and result in an increase in the value of currency. The increased value of currency will result in appreciation of currency.

If the import is greater than the export, it will lead to an increase in the outflow of currency in the country and will result in a reduction of the value of currency. The decreased value of currency will result in a depreciation of currency.

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Answer 4

Question

Chapter 19, Problem 1RQ

To determine

Explain the trade based on daily activities.

Expert Solution & Answer

Explanation of Solution

If a room contains more foreign goods, it implies that the country has more import. If a room contains more domestically produced goods, it implies that the country has more export than imports. If the export is greater than imports, it will lead to an increase in the inflow of currency in the country and result in an increase in the value of currency. The increased value of currency will result in appreciation of currency.

If the import is greater than the export, it will lead to an increase in the outflow of currency in the country and will result in a reduction of the value of currency. The decreased value of currency will result in a depreciation of currency.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 19, Problem 1RQ

To determine

Explain the trade based on daily activities.

Expert Solution & Answer

Explanation of Solution

If a room contains more foreign goods, it implies that the country has more import. If a room contains more domestically produced goods, it implies that the country has more export than imports. If the export is greater than imports, it will lead to an increase in the inflow of currency in the country and result in an increase in the value of currency. The increased value of currency will result in appreciation of currency.

If the import is greater than the export, it will lead to an increase in the outflow of currency in the country and will result in a reduction of the value of currency. The decreased value of currency will result in a depreciation of currency.

Answer 6

Chapter 19, Problem 1RQ

To determine

Explain the trade based on daily activities.

Expert Solution & Answer

Explanation of Solution

If a room contains more foreign goods, it implies that the country has more import. If a room contains more domestically produced goods, it implies that the country has more export than imports. If the export is greater than imports, it will lead to an increase in the inflow of currency in the country and result in an increase in the value of currency. The increased value of currency will result in appreciation of currency.

If the import is greater than the export, it will lead to an increase in the outflow of currency in the country and will result in a reduction of the value of currency. The decreased value of currency will result in a depreciation of currency.

Answer 7

Chapter 19, Problem 1RQ

To determine

Explain the trade based on daily activities.

Answer 8

Expert Solution & Answer

Explanation of Solution

If a room contains more foreign goods, it implies that the country has more import. If a room contains more domestically produced goods, it implies that the country has more export than imports. If the export is greater than imports, it will lead to an increase in the inflow of currency in the country and result in an increase in the value of currency. The increased value of currency will result in appreciation of currency.

If the import is greater than the export, it will lead to an increase in the outflow of currency in the country and will result in a reduction of the value of currency. The decreased value of currency will result in a depreciation of currency.