PRINC OF ECONOMICS PKG >CUSTOM<
7th Edition
ISBN: 9781305018549
Author: Mankiw
Publisher: CENGAGE C
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Question
Chapter 32, Problem 5CQQ
To determine
The impact of capital inflow on the exchange rate and interest rate.
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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
One of Fiji's major trading partners is Australia. If Australia's GDP rises, the demand for Fiji's exports will _____, leading to a _____ shift in the demand for the Fijian dollar.
a. rise; right
b. rise; left
c. fall; right
d. fall; left
Give the answer with detail explanation.
The US and China are the two biggest economies of the world. Which of these situations will most likely increase the value of the US dollar as it trades with China?
a.
China’s GDP increases faster than US
b.
China’s exports increases sharply
c.
China imports more from the US than it exports to the US
d.
China exports more to the US than it imports from the US
Chapter 32 Solutions
PRINC OF ECONOMICS PKG >CUSTOM<
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- If there is an unrest in Turkey, and Turkish investors purchase U.S. securities, the Part 2 А. demand for the Turkish currency will rise. В. supply of the Turkish currency will fall. С. demand for the Turkish currency will stay the same. D. supply of the Turkish currency will rise.arrow_forwardIn 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_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_forward
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