Bundle: Principles of Economics, Loose-leaf Version, 8th + LMS Integrated MindTap Economics, 2 terms (12 months) Printed Access Card
8th Edition
ISBN: 9781337607735
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 32, Problem 2CQQ
To determine
The impact of appreciation of domestic currency on imports and exports.
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Students have asked these similar questions
As domestic currency appreciates, we would expect
a. Trade deficit to decrease.
b. Trade deficit to increase.
c. Imports to decrease.
d. Exports to increase.
A high value of a currency would result in which of the following?Select one:a. Greater competitiveness of exportsb. More exportsc. Increased demand of the higher value currencyd. Increased demand of exports of higher currency value products e. More ImportsIf
Malaysian exports create
a.
Supply of foreign currencies to Malaysia and a demand for RM in foreign countries.
b.
Demand of foreign currencies to Malaysia and supply for RM in foreign countries.
c.
Demand of foreign currencies to Malaysia and a demand for RM in foreign countries.
d.
Supply of foreign currencies to Malaysia and a supply for RM in foreign countries.
Chapter 32 Solutions
Bundle: Principles of Economics, Loose-leaf Version, 8th + LMS Integrated MindTap Economics, 2 terms (12 months) Printed Access Card
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- 14. Kazakhstan trades with Russia. If costs of production rise in Russia, the demand for the Kazakhstani tenge will and the tenge will a. rise; depreciate b. fall; depreciate c. rise; appreciate d. fall; appreciatearrow_forwardIncreased America imports of Japanese goods creates a. an increase in demand for U.S. dollars and a decrease in demand for Japanese yen. b. a decrease in demand for U.S. dollars and an increase in supply for Japanese yen. c. an increase in demand for Japanese yen and a decrease in supply of U.S. dollars. d. an increase in demand for Japanese yen and an increase in supply of U.S. dollars. e. an increase in supply of Japanese yen and an increase in supply of U.S. dollarsarrow_forwardA nation’s merchandise trade balance reflects _____. A.the value of exports of servicestrade b. in tangibles and intangibles c.the same information as its balance of payments d.trade in tangible products e.the value of imports of servicesarrow_forward
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- In the foreign exchange market, when the U.S. interest rate rises, the supply of dollars ________ and the foreign exchange rate ________. A. decreases; rises B. increases; falls C. increases; rises D. increases; does not change E. decreases; fallsarrow_forwardWhy would a country want to impose an exchange rate ceiling? a. A strong currency encourages imports and can be used to fight inflation. b. A strong currency stimulates an economy. c. A weak currency encourages imports and can be used to fight inflation. d. A weak currency will encourage exports and stimulate the economy.arrow_forwardWhat is the term for the difference between the value of a country's exports and the value of its imports? A. Trade deficit B. Trade balance C. Trade surplus D. Net exportsarrow_forward
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