Currency Nov. 2016 exchange rate Euro Japanese yen Canadian dollar (per U.S. dollar) 0.7466 100.2 1.0436 (per U.S. dollar) 0.8009 114.61 L1331 The table above shows the exchange rates between various currencies and the U.S. dolar. Between 2015 and 2016, the U.S. dollar against the Japanese yen. O depreciated; depreciated against the Euro and appreciated; appreciated O appreciated; depreciated O depreciated; appreciated

Currency Nov. 2016 exchange rate Euro Japanese yen Canadian dollar (per U.S. dollar) 0.7466 100.2 1.0436 (per U.S. dollar) 0.8009 114.61 L1331 The table above shows the exchange rates between various currencies and the U.S. dolar. Between 2015 and 2016, the U.S. dollar against the Japanese yen. O depreciated; depreciated against the Euro and appreciated; appreciated O appreciated; depreciated O depreciated; appreciated

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Open-economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 8PA

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Similar questions

If a countrys currency is expected to appreciate in value, what would you think will be the impact of expected exchange rates on yields (e.g., the Interest rate paid on government bonds) in that country? Hint: Think about how expected exchange rate changes and interest rates affect a currencys demand and supply.
Does a higher rate of return in a nations economy, all other things being equal, affect the exchange rate of its currency? If so, how?
Imagine that the economy of Germany finds itself in the following situation: the government budget has a surplus of 1 of Germanys GDP; private savings is 20 of GDP; and physical investment is 18 of GDP. Based on the national saving and investment identity, what is the current account balance? If the government budget surplus falls to zero, how will this affect the current account balance?
Imagine that the U.S. economy finds itself in the following situation: a government budget deficit of 100 billion, total domestic savings of 1,500 billion, and total domestic physical capital investment of 1,600 billion. According to the national saving and Investment Identity, what will be the current account balance? What will be the current account balance if Investment rises by 50 billion, while the budget deficit and national savings remain the same?