Supply Demand QUANTITY OF DOLLARS Refer to the figure above. When American travelers spend money overseas, that is part of U.S. imports. When foreigners come to the U.S. and spend money, that is part of U.S. exports. If after the pandemic there is a permanent reduction in overseas travel by U.S. residents but foreign travel to the U.S. comes back, which curve in the figure would shift and in which direction? The demand curve in graph (a) would shift to the right. The supply curve in graph (c) would shift to the right. The demand curve in graph (c) would shift to the right. REAL EXCHANGE RATE

Supply Demand QUANTITY OF DOLLARS Refer to the figure above. When American travelers spend money overseas, that is part of U.S. imports. When foreigners come to the U.S. and spend money, that is part of U.S. exports. If after the pandemic there is a permanent reduction in overseas travel by U.S. residents but foreign travel to the U.S. comes back, which curve in the figure would shift and in which direction? The demand curve in graph (a) would shift to the right. The supply curve in graph (c) would shift to the right. The demand curve in graph (c) would shift to the right. REAL EXCHANGE RATE

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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