b) What happens to the U. S. real exchange rate (RER) and its net exports (NX) under the following situations? i) The U.S. NER is unchanged, the U.S. price rises, foreign price stays the same. ii) The U.S. NER is unchanged, the U.S. price unchanged, foreign price rises. iii) The U.S. NER rises, the U.S. price remains same, foreign price stays the same. iv) The U.S. NER is unchanged, the U.S. price falls, foreign price falls. v) The U.S. NER falls, the U.S. price rises, foreign price stays the same
b) What happens to the U. S. real exchange rate (RER) and its net exports (NX) under the following situations? i) The U.S. NER is unchanged, the U.S. price rises, foreign price stays the same. ii) The U.S. NER is unchanged, the U.S. price unchanged, foreign price rises. iii) The U.S. NER rises, the U.S. price remains same, foreign price stays the same. iv) The U.S. NER is unchanged, the U.S. price falls, foreign price falls. v) The U.S. NER falls, the U.S. price rises, foreign price stays the same
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter11: Foreign Exchange, Trade, And Bubbles
Section: Chapter Questions
Problem 6MC
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b) What happens to the U. S. real exchange rate (RER) and its net exports (NX) under the following situations?
i) The U.S. NER is unchanged, the U.S.
ii) The U.S. NER is unchanged, the U.S. price unchanged, foreign price rises.
iii) The U.S. NER rises, the U.S. price remains same, foreign price stays the same.
iv) The U.S. NER is unchanged, the U.S. price falls, foreign price falls.
v) The U.S. NER falls, the U.S. price rises, foreign price stays the same
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