The effect that a change in the price level has on a country's exports and imports is called the: Exchange rate effect. Interest rate effect. International effect. Multiplier effect.
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- An open market sale by the Bank of Canada will cause the value of the dollar to Select one: a. rise, while increasing net exports. b. rise, while reducing net exports. c. fall, while reducing net exports. d. fall, while increasing net exports.In your macroeconomic lectures you are often told that exchange rates and interest rates are important for macroeconomic decision-making. How does an increase in Japan’s government budget deficit affect each of the following? The real interest rate in the short run in Japan. Explain. Private domestic investment in plant and equipment in Japan. Draw a correctly labeled graph of the foreign exchange market for the euro, and show the effect of the change in the real interest rate in Japan from part (a)(i) on each of the following. Supply of euros. Explain. Yen price of the euro To reverse the change in the yen price of the euro identified in part (b) (ii), should the European Central Bank buy or sell euros in the foreign exchang market? Explain.Will a direct increase in the price of U.S. goods relative to foreign goods lead to a change in the quantity demanded of Real GDP or to a change in Aggregate Demand? Will a change in the exchange rate that subsequently increases the price of U.S. goods relative to foreign goods lead to a change in the quantity demanded of Real GDP or to a change in Aggregate Demand?
- If a country’s exchange rate depreciates what would be the most likely impact on exports, imports and the trade balance of the country?A rise in interest rates tends to contract the economy by appreciating the currency and reducing net exports. True FalseQ3-8 Appreciation of the domestic currency will Select one: a. increase domestic aggregate demand. b. decrease domestic aggregate supply. c. decrease domestic aggregate demand, and possibly increase domestic aggregate supply. d. cause a deterioration in the trade balance, but have no effect on aggregate supply or demand.
- What does this graph show and what is the relationship between real exchange rate and net exports?What determines the exchange rate? If a nation's currency appreciates in the foreign market, how will this impact net exports? Explain. 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.. In 2019, the exchange rate was ¥6.74=$1. Convert the China GDP of ¥99,086.5 billion yuan in 2019 with the U.S. GDP of $21,430 trillion for the same year.
- If countries that imported from the United States went into recession, we expect that U.S. net exports would _________ rise, making the aggregate demand shift right. rise, making aggregate supply shift left. fall, making aggregate supply shift right. fall, making aggregate demand shift left.As the domestic price level falls domestic citizens will import less and direct spending to relatively cheaper domestic goods. Foreigners may also purchase more exports. Overall this will improve the trade balance and increasing aggregate demand. This phenomenon is known as the wealth effect the exchange rate effect the interest rate effect the liquidity effectWhat is the effect of a fiscal expansion on output and interest rates when exchange rates are fixed and capital is perfectly mobile?
