Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971509
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 19, Problem 2CQQ
To determine
The impact of appreciation of domestic currency on imports and exports.
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Holding other things constant, an appreciation of anation’s currency causesa. exports to rise and imports to fall.b. exports to fall and imports to rise.c. both exports and imports to rise.d. both exports and imports to fall.
9
The fall of the exchange rate favors imports and exports
a.
True
b.
False
Assume there has been an increase in the volume of exports from South Africa to the United States.a) Explain, with the use of a graph, the impact this had on the demand and supply of dollars and the exchange rate in South Africa.
b) Explain which currency appreciated and which currency depreciated.
Chapter 19 Solutions
Principles of Macroeconomics (MindTap Course List)
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- 1. How would the following transactions affect Malaysian exports, imports and net exports？ A）A Thai citizen shops at a store in Kota Bahruarrow_forwardWhen the dollar appreciates, U.S. Select one: O a. exports and imports increase. O b. exports decrease, while imports increase. C. exports increase. while imports decrease. O d. exports and imports decrease.arrow_forwardPlease no written by hand and no image India is a major exporter of agricultural products and software and a major importer of oil which is priced in USD. If India devalues its currency INR, how does this action affect India’s exports and imports? Explain.arrow_forward
- An exchange rate is best described as? A)The price of goods in terms of a foreign currencyB)The price of one nation's currency in terms of another'sC)The amount of currency you need to buy a Big MacD)The rate at which goods are exchanged between two countriesarrow_forward1. Would each of the following groups be happy or unhappy if ringgit appreciated? Explain.A) Hong Kong pension funds holding Malaysian government bonds B) Malaysian manufacturing industries C) Australian tourists planning a trip to Malaysia D) A Malaysian firm trying to purchase property overseas 2. How would the following transactions affect Malaysian exports, imports and net exports？ A）A Thai citizen shops at a store in Kota Bahruarrow_forwardIf U.S. securities pay 6 percent interest, and if Great Britain’s securities pay 8 percent interest, then a. pounds depreciate relative to dollars. b. pounds appreciate relative to dollars. c. Great Britain’s imports will fall. d. Great Britain’s exports will rise.arrow_forward
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