The effect on the export and domestic sales when dollar depreciates .

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Chapter 6, Problem 1E

To determine

To find:The effect on the export and domestic sales when dollar depreciates.

Expert Solution & Answer

Explanation of Solution

The depreciation of the dollar by 20 percent indicates that the value of the dollar has fallen as compared to other currencies. Since the fall in the value of the dollar will make other countries more capable to increase the demand for U.S. goods. Therefore, the export of the U.S. will increase and imports will fall. Moreover, if the domestic manufacturer uses the equipment or raw material which the manufacturer imports from other nations then the depreciation of the dollar will result in an increase in the cost of production. Consequently, sales and supply will decrease.

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Answer 2

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Chapter 6, Problem 1E

To determine

To find:The effect on the export and domestic sales when dollar depreciates.

Expert Solution & Answer

Explanation of Solution

The depreciation of the dollar by 20 percent indicates that the value of the dollar has fallen as compared to other currencies. Since the fall in the value of the dollar will make other countries more capable to increase the demand for U.S. goods. Therefore, the export of the U.S. will increase and imports will fall. Moreover, if the domestic manufacturer uses the equipment or raw material which the manufacturer imports from other nations then the depreciation of the dollar will result in an increase in the cost of production. Consequently, sales and supply will decrease.

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Answer 3

Question

100%

Chapter 6, Problem 1E

To determine

To find:The effect on the export and domestic sales when dollar depreciates.

Expert Solution & Answer

Explanation of Solution

The depreciation of the dollar by 20 percent indicates that the value of the dollar has fallen as compared to other currencies. Since the fall in the value of the dollar will make other countries more capable to increase the demand for U.S. goods. Therefore, the export of the U.S. will increase and imports will fall. Moreover, if the domestic manufacturer uses the equipment or raw material which the manufacturer imports from other nations then the depreciation of the dollar will result in an increase in the cost of production. Consequently, sales and supply will decrease.

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Answer 4

Question

100%

Chapter 6, Problem 1E

To determine

To find:The effect on the export and domestic sales when dollar depreciates.

Expert Solution & Answer

Explanation of Solution

The depreciation of the dollar by 20 percent indicates that the value of the dollar has fallen as compared to other currencies. Since the fall in the value of the dollar will make other countries more capable to increase the demand for U.S. goods. Therefore, the export of the U.S. will increase and imports will fall. Moreover, if the domestic manufacturer uses the equipment or raw material which the manufacturer imports from other nations then the depreciation of the dollar will result in an increase in the cost of production. Consequently, sales and supply will decrease.

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Answer 5

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Answer 6

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Answer 7

Chapter 6, Problem 1E

To determine

To find:The effect on the export and domestic sales when dollar depreciates.

Expert Solution & Answer

Explanation of Solution

The depreciation of the dollar by 20 percent indicates that the value of the dollar has fallen as compared to other currencies. Since the fall in the value of the dollar will make other countries more capable to increase the demand for U.S. goods. Therefore, the export of the U.S. will increase and imports will fall. Moreover, if the domestic manufacturer uses the equipment or raw material which the manufacturer imports from other nations then the depreciation of the dollar will result in an increase in the cost of production. Consequently, sales and supply will decrease.

Answer 8

Chapter 6, Problem 1E

To determine

To find:The effect on the export and domestic sales when dollar depreciates.

Expert Solution & Answer

Explanation of Solution

The depreciation of the dollar by 20 percent indicates that the value of the dollar has fallen as compared to other currencies. Since the fall in the value of the dollar will make other countries more capable to increase the demand for U.S. goods. Therefore, the export of the U.S. will increase and imports will fall. Moreover, if the domestic manufacturer uses the equipment or raw material which the manufacturer imports from other nations then the depreciation of the dollar will result in an increase in the cost of production. Consequently, sales and supply will decrease.

Answer 9

Chapter 6, Problem 1E

To determine

To find:The effect on the export and domestic sales when dollar depreciates.

Answer 10

Expert Solution & Answer

Explanation of Solution

The depreciation of the dollar by 20 percent indicates that the value of the dollar has fallen as compared to other currencies. Since the fall in the value of the dollar will make other countries more capable to increase the demand for U.S. goods. Therefore, the export of the U.S. will increase and imports will fall. Moreover, if the domestic manufacturer uses the equipment or raw material which the manufacturer imports from other nations then the depreciation of the dollar will result in an increase in the cost of production. Consequently, sales and supply will decrease.