Would each of the following groups be happy orunhappy if the U.S. dollar appreciated? Explain.a. Dutch pension funds holding U.S. governmentbondsb. U.S. manufacturing industriesc. Australian tourists planning a trip to the UnitedStatesd. an American firm trying to purchase propertyoverseas

Would each of the following groups be happy orunhappy if the U.S. dollar appreciated? Explain.a. Dutch pension funds holding U.S. governmentbondsb. U.S. manufacturing industriesc. Australian tourists planning a trip to the UnitedStatesd. an American firm trying to purchase propertyoverseas

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 5PA

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Question

Would each of the following groups be happy or
unhappy if the U.S. dollar appreciated? Explain.
a. Dutch pension funds holding U.S. government
bonds
b. U.S. manufacturing industries
c. Australian tourists planning a trip to the United
States
d. an American firm trying to purchase property
overseas

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Select all that are true given an acceleration of economic growth in the Brazilian economy: A.Long term investors would invest in the Brazilian economy, but only if the structural aspects of its economy support it (e.g. fiscal policy & the rule of law) and this would depreciate the currency B.The domestic currency (the Real) would depreciate as foreign investors seek higher returns at lower risk in Brazil. C.Contractionary monetary policy would appreciate the domestic currency due to the lower risk, ceteris paribus. D.The domestic interest rate would increase as the demand for loanable funds is pro-cyclical
Select all that are true given an acceleration of economic growth in the Brazilian economy: A. Long term investors would invest in the Brazilian economy, but only if the structural aspects of its economy support it (e.g. fiscal policy & the rule of law) and this would depreciate the currency B. The domestic currency (the Real) would depreciate as foreign investors seek higher returns at lower risk in Brazil. C. Contractionary monetary policy would appreciate the domestic currency due to the lower risk, ceteris paribus. D. The domestic interest rate would increase as the demand for loanable funds is pro-cyclical Detailedly Explanation Please, Thank you!