ECONOMICS W/CONNECT+20 >C<
20th Edition
ISBN: 9781259714993
Author: McConnell
Publisher: MCG CUSTOM
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Question
Chapter 36.5, Problem 4QQ
To determine
Impact of appreciation of dollar.
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Students have asked these similar questions
An open market sale by the Bank of Canada will cause the value of the dollar to
Select one:
a. rise, while increasing net exports.
b. rise, while reducing net exports.
c. fall, while reducing net exports.
d. fall, while increasing net exports.
Q3-8
Appreciation of the domestic currency will
Select one:
a. increase domestic aggregate demand.
b. decrease domestic aggregate supply.
c. decrease domestic aggregate demand, and possibly increase domestic aggregate supply.
d. cause a deterioration in the trade balance, but have no effect on aggregate supply or demand.
Last week, 6 swedish kroner could purchase one U.S. dollar. This week, it takes 8 to purchase one U.S. dollar. this change
U.S. aggregate demand.
in the value of the dollar will
exports from the U.S. sweden and
1. decrease; increase
2. increase; increase
3. increase; decrease
4. decrease; decrease
Chapter 36 Solutions
ECONOMICS W/CONNECT+20 >C<
Ch. 36.1 - Prob. 1QQCh. 36.1 - Prob. 2QQCh. 36.1 - Prob. 3QQCh. 36.1 - Prob. 4QQCh. 36.4 - Prob. 1QQCh. 36.4 - Prob. 2QQCh. 36.4 - Prob. 3QQCh. 36.4 - Prob. 4QQCh. 36.5 - Prob. 1QQCh. 36.5 - Prob. 2QQ
Ch. 36.5 - Prob. 3QQCh. 36.5 - Prob. 4QQCh. 36 - Prob. 1DQCh. 36 - Prob. 2DQCh. 36 - Prob. 3DQCh. 36 - Prob. 4DQCh. 36 - Prob. 5DQCh. 36 - Prob. 6DQCh. 36 - Prob. 7DQCh. 36 - Prob. 8DQCh. 36 - Prob. 1RQCh. 36 - Prob. 2RQCh. 36 - Prob. 3RQCh. 36 - Prob. 4RQCh. 36 - Prob. 5RQCh. 36 - Prob. 6RQCh. 36 - Prob. 7RQCh. 36 - Prob. 8RQCh. 36 - Prob. 9RQCh. 36 - Prob. 1PCh. 36 - Prob. 2PCh. 36 - Prob. 3PCh. 36 - Prob. 4PCh. 36 - Prob. 5PCh. 36 - Prob. 6PCh. 36 - Prob. 7P
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- What is the impact of the fall in Canadian interest rates? a. an appreciation of the dollar and smaller net exports b. a depreciation of the dollar and greater net exports c. an appreciation of the dollar and greater net exports d. a depreciation of the dollar and smaller net exportsarrow_forwardThe value of the U.S. dollar typically increases when the (select all that apply) A. global economy is strong. B. U.S. economy is strong. C. global economy is weak. D. U.S. economy is weak.arrow_forwardThe currency of the United States is: a. backed dollar for dollar by gold. b. backed by a gold cover of 50 percent. c. not backed by any precious metal. d. backed by the government's silver reserves. e. backed by the government's gold and silver reservesarrow_forward
- The wealth effect stems from the idea that a higher price levela. increases the real value of households’ money holdings.b. decreases the real value of households’ money holdings.c. increases the real value of the domestic currency in foreign-exchange markets.d. decreases the real value of the domestic currency in foreign-exchange markets.arrow_forwardAll of these are the positive effects of high net exports, except ______. a. Lower price levels b. Higher gross domestic product c. Higher exchange rates d. Higher aggregate demandarrow_forwardSuppose government spending was $3.90 trillion, tax revenue was $4.50 trillion, GDP was $14.02 trillion, and total consumer spending was $10.75 trillion. Instructions: Round your answers to two decimal places and include a negative sign if necessary. a. If the economy has no exports or imports, what was the national savings? trillion b. How much was public savings? trillion c. How much was private savings? trillionarrow_forward
- One reason for an increase in aggregate demand (AD) on the net exports side is A a rise in the expected rate of return. B a rise in interest rates. C an increase in foreign demand. D an increase in the relative price of U.S. goods.arrow_forward2. Suppose GDP is $10,000 trillion, taxes are $1,500 trillion, consumption is $6,000 trillion, and government expenditure is $1,700 trillion. Investment is a function of the interest rate such that it is represented by the following equation (in trillions): 3,300 Where is the world real interest rate, expressed as a percentage. Use this information to calculate private savings, public savings, and national savings. I = - 100 * iarrow_forward1) Consider a large open economy that engages in a fiscal contraction. In response to this policy change, what will happen to (a) national savings (b) the real rate of interest (c) net capital flows (d) the real exchange rate and (e) net exports?arrow_forward
- Explain the effects of a fall in the value of the UK pound and lower spending by businesses and households on U.K. aggregate demand and aggregate supply The fall in the value of the U.K. pound OA. decreases U.K exports and increases U.K. imports, decreases OB. increases UK exports and decreases UK imports, increases C. increases UK exports and decreases U.K. imports, does not change D. has no influence on U.K. exports or UK imports, does not change which aggregate demand. USarrow_forwardQuestion 22 The aggregate quantity of goods and service demanded changes as the price level falls because O a. real wealth rises, interest rates rise, and the dollar appreciates. b. real wealth rises, interest rates fall, and the dollar depreciates. c. real wealth falls, interest rates rise, and the dollar appreciates. d. real wealth falls, interest rates fall, and the dollar depreciates.arrow_forward1) Assume that Canadian government taxes away $0.15 of each dollar of new income, that 35% of the remaining $0.85 of disposable income is spent on imports, and that 2% of disposable income is saved. Enter your responses below rounded to 2 decimal places. a. The marginal propensity to withdraw is . b. From each new dollar of income $ is spent on domestic consumption items.c. The value of the Canadian spending multiplier is . 2) In each case below a particular fiscal policy affects an economy's AD curve via the spending multiplier. Calculate the spending multiplier and find the direction and size of the shift in the AD curve. Enter your responses for the spending multiplier rounded to 2 decimal places, and size of the shift of the AD curve rounded to 1 decimal place. Do not put minus signs in your answers. a. If government purchases increase by $3 billion in an economy with an MPW of 0.65 then the spending multiplier is and the AD curve finally shifts to the by $…arrow_forward
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