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Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091985

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BuyFindarrow_forward

Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091985
Textbook Problem

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

Subpart (a):

To determine

The impact of appreciation of US dollar.

Explanation

When the US dollar appreciates, it is advantage for the Dutch pension fund. Because they would get more Euros for ...

Subpart (b):

To determine

The impact of appreciation of US dollar.

Sub part (c):

To determine

The impact of appreciation of US dollar.

Sub part (d):

To determine

The impact of appreciation of US dollar.

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