Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 34, Problem 1WNG
(a)
To determine
Check whether the dollar appreciates or deprecates against the Russian ruble.
(b)
To determine
Check whether the dollar has appreciated or deprecated against the Brazilian real.
(c)
To determine
Check whether the dollar appreciates or deprecates against the Indian rupee.
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You own a local company. In the past year, you successfully expanded your sales market into Europe, and you now have profits and
cash denominated in euros. You want to convert the euros to your home country currency to repatriate the profits and pay taxes. You are
a. not required to convert the euros to the home currency to pay taxes.
b. a demander of the euro in the foreign exchange market.
c. a supplier of your home country's currency in the foreign exchange market.
d. a demander of your home country's currency in the foreign exchange market.
A. Canada produces natural resources (coal, natural gas, and others), the demand for
which has increased rapidly as China and other emerging economies expand.
i.
Explain how growth in the demand for Canada's natural resources would affect
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Explain how the supply of Canadian dollars would change.
ii.
iii.
Explain how the value of the Canadian dollar would change.
iv. Illustrate your answer with a graphical analysis.
1
The U.S. dollar exchange rate increased from $0.96 Canadian in June 2011 to $1.03 Canadian in June 2012, and it decreased from 81 Japanese yen in June 2011 to 78 yen in June 2012.
1. Did the U.S. dollar appreciate or depreciate against the Canadian dollar? Did the U.S. dollar appreciate or depreciate against the yen?
2. What was the value of the Canadian dollar in terms of U.S. dollars in June 2011 and June 2012? Did the Canadian dollar appreciate or depreciate against the U.S. dollar over the year June 2011 to June 2012?
3. What was the value of 100 yen in terms of U.S. dollars in June 2011 and June 2012? Did the yen appreciate or depreciate against the U.S. dollar over the year June 2011 to June 2012?
Chapter 34 Solutions
Economics (MindTap Course List)
Ch. 34.2 - Prob. 1STCh. 34.2 - Prob. 2STCh. 34.2 - Prob. 3STCh. 34.2 - Prob. 4STCh. 34.3 - Prob. 1STCh. 34.3 - Prob. 2STCh. 34.3 - Prob. 3STCh. 34.3 - Prob. 4STCh. 34 - Prob. 1QPCh. 34 - Prob. 2QP
Ch. 34 - Prob. 3QPCh. 34 - Prob. 4QPCh. 34 - Prob. 5QPCh. 34 - Prob. 6QPCh. 34 - Prob. 7QPCh. 34 - Prob. 8QPCh. 34 - Prob. 9QPCh. 34 - Prob. 10QPCh. 34 - Prob. 11QPCh. 34 - Prob. 12QPCh. 34 - Prob. 13QPCh. 34 - Prob. 14QPCh. 34 - Prob. 15QPCh. 34 - Prob. 16QPCh. 34 - Prob. 1WNGCh. 34 - Prob. 2WNGCh. 34 - Prob. 3WNGCh. 34 - Prob. 4WNGCh. 34 - Prob. 5WNG
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