If the Americans increase the quota on Japanese electronic devices, the dollar tends to...O A. appreciateB. depreciateO C. appreciate then depreciateO D. be stable

Import quotas are intended to encourage people to buy domestic items, which can only be purchased…

Answered: If the Americans increase the quota on…

Business

Economics

If the Americans increase the quota on Japanese electronic devices, the dollar tends to...

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 4CQQ

See similar textbooks

Related questions

Q: Identify any two reasons that US dollars would be demanded in South Africa

A: There can be many reasons that the foreign currency would be demanded in a country such as for…

Q: Why does the decline in value of a certain currency cause imports to be expensive and exports…

A: Demand-pull inflation/demand-side inflation arises when the aggregate demand (AD) rises faster than…

Q: Q.12.1 As a result of more Americans visiting South Africa, we can expect, ceteris paribus: (a) an…

A: "Since you have asked multiple questions, we will solve the first one for you. If you want any…

Q: list effects of china national sword policy in US exports

A: China is the country that makes the largest imports of plastic and paper waste till 2017. After…

Q: explain the process of Exchange Rat

A: Exchange rate provides the value of domestic currency in terms of foreign currency.…

Q: Example 9.5 describes the effects of the sugar quota. The supply equation is Qs = -7.48 + 0.84P, and…

A: The given information: Qs=-7.48+0.84PQd=26.7-0.23P Import limited to 5.3 billion Domestic price is…

Q: Qd = 100 - 0.5P Qs = P - 50 The world price (which will not be affected by anything that we do)…

Q: How will the following events affect imports of a country, ceteris paribus? increase decrease no…

A: For a country, imports refers to the situation when domestic consumers make demand for foreign goods…

Q: TRUE OR FALSE? Under a gold standard if there is a trade imbalance between two countries, there will…

A: The gold standard is basically a type of monetary system in which a country's currency or paper…

Q: Determine whether a country will become a net-importer or net-exporter of agood when it moves from…

A: Autarky refers to the situation of a country when the country is fully self-sufficient or in other…

Q: Explain the effect of a weak Kenya Shilling to the demand for our country’s exports and imports

A: ‘Kenya Shilling(KES)’ is the official and most stable currency of some of the counties. Despite its…

Q: Tariffs reallocate income from consumers to producers. government to producers. producers to…

A: The product is imported if the domestic price is higher than the world price. Any tariff on the…

Q: When US assets are more attractive to foreign investors, what happens to the demand for dollars vs…

A: In a market such as crops and laptop, equilibrium emerges when the units desired to be offered by…

Q: If the U.S. Congress imposes a quota on imports of Japanese cars due to claims of "unfair" trade…

A: The imposition of import quota by the U.S. will reduce the export of Japanese cars and increase the…

Q: What will happen if the price of US dollars declines considerably against the Japanese yen then: a)…

A: Exchange rate is the rate of exchange of two currencies. It means that it is the rate at which one…

Q: A trade deficit occurs when a nation imports more than it exports. True O False

A: International economics is that branch of economics which studies various international aspects that…

Q: Explain with the help of a graph the effect of an increase in the relative price of the exported…

A: The PPC shows the combinations of those goods which an economy can produce with the given resources.…

Q: When the official dollar price of a foreign currency is set below its

A: Exchange Rate: We know that The exchange rate represents how much of a currency is needed to…

Q: If the unites States imports more goods from abroad than it exports, foreigner will tend to have a…

A: A trade surplus is an economic indicator indicating a favourable trade balance in which a country's…

Q: Just clarify "tariffs on a variety of American exports..." to identify who is imposing these…

A: A tariff is a type of trade barrier used by the government to protect its producer or influence the…

Q: How will currency appreciation make imports cheaper and exports more expensive, causing the trade…

A: Increasing the value of country’s currency against other country’s currency is termed as…

Q: Japan generally runs a significant trade surplus. Do you think this is most related to high foreign…

A: Answer: Correct option: High Japanese saving rate relative to Japanese investment.

Q: What do you call the Taxes imposed on goods exported from or imported to a country?

A: In an economy, taxes are classified into different categories according to the activity performed by…

Q: Rapid increases in the U.S. exports of goods and services will result in a(n) U.S. dollars in the…

A: Exports and imports of goods and services have an effect on the exchange rate value of the domestic…

Q: Why does international trade occur? What does it mean to run a deficit in the merchandise trade…

A: International trade: It means the exchange of goods and services between two or more countries.

Q: NAFTA attempts to keep other nations' low prices from hurting domestic business. True O False

A: NAFTA stands for the North American Free Trade Agreement, was amongst the world’s largest free trade…

Q: If the US dollar appreciated against the Japanese yen what would you expect to happen to US net…

A: In the flexible exchange rate system, when the value of domestic currency increases in terms of…

Q: balance trade has, in most cases been unfavorable. What could be the causes of this situation?

A: Balance of payment of a country shows that the number of finanacial transaction made between a…

Q: What is it called when country import prices gain relative to that of its export prices?

A: Terms of trade (TOT) address the proportion between a nation's fare costs and its import costs. At…

Q: Should imports to the United States be curtailed by, say 20 percent to eliminate our trade deficit?…

A: The balance of trade refers to exporting and importing and, hence, evaluating the overall economic…

Q: It is very important to the leaders of Dionland that people can make any trade they wish to using…

A: According to the Impossible Trinity developed by John Flemming and Robert Mundell, a country can…

Q: If the exchange was 100 Japanese Yen = 1 US dollar last month and today it is 90 Japanese = 1 US…

A: Exchange rate fluctuations have an effect on trade.

Q: If the demand for a country’s exports falls at the same timethat tariffs on imports are raised, will…

A: Currency appreciation means when the value of a currency increases relative to the value of the…

Q: An export subsidy always makes a country worse off on net. True False

A: An export subsidy always makes a country worse off on net - TRUE.

Q: Would cappuccino by the cup or Prada handbags have wider price variation in a free trade area like…

A: Free trade area refers to the area where goods and services can move from one place to other easily…

Q: If China has a trade surplus with the United States, it is a good thing for the U.S economy? True or…

A: Trade surplus means that a country's export is greater than it's import.

Q: what is Trump doing to end the tariff with China?

A: Last year Trump administration imposed taxes on importing items from China and the taxes would be…

Q: If the government implements tariffs and quotas on foreign goods and services, then the U.S. trade…

A: Tariff and Quotas: Tariffs and quotas are different terms by tariffs we mean a certain kind of tax…

Q: b.) Governments are aware of the impact of Imports on their economy bu because they also want their…

A: Six instrument of trade protection:- 1) Tariff:- Tariffs are among the earliest known instruments…

Question

If the Americans increase the quota on Japanese electronic devices, the dollar tends to...
O A. appreciate
B. depreciate
O C. appreciate then depreciate
O D. be stable

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

A British pound cost 2.00 in U.S. dollars in 2008, but 1.27 in U.S. dollars in 2017. Was the pound weaker or stronger against the dollar? Did the dollar appreciate or depreciate versus the pound?
Colombia is the world’s biggest producer of roses. The global demand for rosesincreases and at the same time Colombia’s central bank increases the interest rate.In the foreign exchange market for Colombian pesos, what happens to: The quantity of pesos demanded?iv. The quantity of pesos supplied?v. The peso-Canadian dollar exchange rate?
A can of soda costs $1.25 in the United States and 25 pesos in Mexico. What is the pesos-dollar exchange rate(meaured in pesos per dollar) if purchasing-power parity holds? If a monetary expansion caused all prices in mexico to double, so that soda rose to 50 pesos, what would happen to the peso-dollar exchnage rate?
In the mid- to late 1970s, the yen appreciated in valuerelative to the dollar, even though Japan’s inflation ratewas higher than America’s. How can this be explainedby improvements in the productivity of Japanese industry relative to U.S. industry?
Between 1975 and 1995, U.S. infation averaged 5.7% per year, whileinfation in Japan averaged 3.6% per year. At what rate should we expectthe dollar to depreciate against the yen between 1975 and 1995?
When there is an increase in the value of the EuropeanUnion’s euro, all else equal, how will American businessesbe affected? What will happen when there is a decrease inthe value of the American dollar relative to the Japaneseyen, given all else is equal?
If prices in the U.S. rise faster than prices in the United Kingdom, then according to the doctrine of purchasing-power parity the U.S. nominal exchange rate should rise. a. True O b. False
If the Japanese price level rises by 5% relative to theprice level in the United States, what does the theoryof purchasing power parity predict will happen to thevalue of the Japanese yen in terms of dollars?
(1) a. If the exchange rate changes from $1.70 per British pound (₤1) to $1.72 per ₤1, has the pound (₤) appreciated or depreciated? Has the dollar appreciated or depreciated? b. What happens to the ₤-price that British residents pay for a $500 U.S. export good due to the exchange rate change above? c. What happens to the $-price that U.S. residents pay for a ₤1200 import good from Britain? d. How do these changes affect the economic welfare of U.S. exporters and U.S. importers? (2) Suppose that the euro (€) appreciates from $1.00 per €1 to $1.20 per €1. Determine whether the underlined individuals listed below would see that appreciation as a good or a bad thing. a. A U.S. business buys €10,000 of chemicals from a German company. b. An Italian clothing company buys $100,000 of leather from a U.S. leather maker. c. A U.S. resident has a retirement account totaling €500,000 in a German bank. d. A U.S. company must make an interest payment of €25,000 to the French bank from which it…
Under a fixed exchange rate regime, when the value of the domestic currency decreases, it is called a(n) O depreciation O appreciation O revaluation O devaluation O none of these are correct