Econ-Module 7 International HW

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Question 5 (a) Under what condition will a downward slopıng foreign exchange supply curve produce market instability? (b) Foreign exchange markets are usually stable in the long-run. The price adjustment process in response to goods and services may, however, be inelastic in the short-run. With the aid of a graph, explain the adjustment of the trade balance to an exchange rate depreciation. Substantiate your reasoning.

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Question 10 1 pts The table below shows the exchange rates between the US dollar and currencies from four other countries. How much of their local currency (Yen) would someone from Japan need to buy an Ipad that is being sold for $400 in the US? Units of Foreign Currency you can buy with one US dollar Number of US dollars you can buy with one unit of Foreign currency Indian Rupee 71.94 A Euro 0.91 Turkish Lira Japanese Yen 0.17 D 0.0092 O 3.68 Yen 400 Yen 43478.26 Yen O 368 Yen

(2).(a)What factors affect equilibrium exchange rate in the foreign exchange market? Use appropriate graphical illustrations to analyze the impact of relative inflation rates and relative interest rates on the exchange rate for the British pound sterling in terms of the U.S. dollar. (b)Šuppose the exchange rate for the Iraqi Dinar moves from $0.00069 to $0.00072. Which currency has appreciated and by what percentage? Which currency depreciated and by what percentage?

PRICE (Peso per dollar) 9. Study Questions and Problems #9 The following graph depicts the supply and demand curves for U.S. dollars in the foreign exchange market. Suppose that inflation rates increase in the United States. On the graph, shift either the supply of dollars curve, the demand for dollars curve, or both curves to best reflect the given scenario. ? QUANTITY OF DOLLARS (Millions per day) D If inflation rates increase in the United States, the U.S. dollar ŏ S D S

9) Using the foreign exchange market diagram, graphically illustrate and explain the impact of U.S. interest rates that exceed foreign interest rates, all else constant, on the exchange rate.

Question 3 In answering the question, you should emphasize the line of reasoning that generated your results; it is not enough to list the results of your analysis. Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. Assume that yesterday the exchange rate between the euro and the Singaporean dollar was 1 euro = 0.58 Singaporean dollars. Assume that today the euro is trading at 1 euro = 0.60 Singaporean dollars. a. How will the change in the exchange rate affect each of the following in Singapore in the short run? i. Aggregate demand. Explain. ii. The level of employment. Explain. b. Suppose that Singapore wants to return the exchange rate to 1 euro = 0.58 Singaporean dollars. i. Should the Singaporean central bank buy or sell euros in the foreign exchange market? ii. Instead of buying or selling euros, what domestic open-market operation can…

Question: "In a scenario where a country experiences a sudden and significant increase in its natural resource exports due to newly discovered resources, what is the most likely immediate effect on the country's currency in the foreign exchange market?" A) The currency will appreciate. B) The currency will depreciate. C) There will be no change in the currency value. D) The effect on the currency cannot be determined.

(a) Differentiate between monetary policy, fiscal policy and supply side policy, and using relevant examples, explain how such policies can influence the operation of firms. (b) "Many countries today want to stabilise their foreign exchange rates. They equally go for a number of protectionist measures in order to ensure the development of the domestic industry. Using relevant examples, explain how fluctuations in the exchange rate and protectionist measures can affect the operation of businesses in an economy.

For each prompt below, carefully and thoroughly follow the directions. For the graphs, be certain to accurately label all axes, curves, and points as appropriate. Show your work for any calculations.   (a) Draw the foreign exchange market for euros in terms of pounds. Label the equilibrium exchange rate (e1), the equilibrium quantity (Q1), and the current exchange rate (ec). Assume that there is a shortage of the euro at the current rate.   (b) Assume the current exchange rate for the Chinese yuan in terms of the U.S. dollar is $0.20 per yuan. Based on this information, draw the foreign exchange market for dollars. Assume the market is in equilibrium.   The United States and Mexico are trading partners.   (c) Using side-by-side graphs of the exchange market for the U.S. dollar and the Mexican peso, show the impact of an increase in the demand for pesos.   (d) Based on the change indicated in part (c), is the U.S. dollar appreciating or depreciating?   (e) If the United States began…

Problem 1 Gilded Question In 1923, one ounce of gold cost 380 French francs (FRF). If, at the same time one ounce of gold could be purchased in Britain for GBP4.50, what was the exchange rate between the French franc and the British pound? Assumptions Price of an ounce of gold in French frans (FRF/oz) Price of an ounce of gold in Sterling Pounds (GBP/oz) Values FRF 380.00 4.50

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Question 1 (20pts) Describe how each of the following transactions affects the U.S. Balance of Payments. (Recall that each transaction gives rise to two entries in the Balance-of-Payments Accounts.) (a) A French consumer imports American jeans and pays with a check drawn on a U.S. bank in Philadelphia. (b) An American company sells computer software to Costa Rica and receives a money order of $120,000. (c) A citizen from Italy enters the United States on an immigrant visa (that is, upon entering the United States she becomes a permanent resident of the United States). Her wealth in Italy is estimated to be about 1.5 billion U.S. dollars. (d) Frank Rogers, of Durham, buys 2,300.00 dollars of stocks from the German car maker BMW, from Citibank New York, paying with U.S. dollars. (e) An American company sells a subsidiary in the United States and with the proceeds buys a Romanian company. (f) The United States forgives debt of $3,200,000 to Canada. (g) An American family travels to…

20- Balance of payments (BOP) is measuring all international economic transactions between the residents of a country and foreign residents. Please expand the statement by discussing what economic activities are measured by BOP? And why it always be balanced?

The supply of dollars in the foreign exchange market is likely to be upward sloping because as the price of a dollar (the exchange rate) rises ___________________________________.   Group of answer choices A) foreigners demand more American goods because these goods have become less expensive to foreign consumers B) foreigners demand fewer non-American goods because these goods have become more expensive to foreign consumers C) Americans demand fewer foreign goods because these goods have become more expensive to American consumers D) Americans demand more foreign goods because these goods have become less expensive to American consumers

(a) Suppose a computer sells for US$1,200 in the U.S. and for £855 in London. If the exchange rate is £0.65 per dollar, is there any arbitrage (profit opportunity)? Explain      (b). (not connected to part a). If the Euro price of one Canadian dollar was 0.770 in 2003 and the exchange rate adjusted to 1.176 Canadian dollar per Euro in 2004, did the Euro appreciate or depreciate against the Canadian dollar. Explain and show your computation.

Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

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