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.

Q: A relatively small U.S. balance-of-trade deficit is commonly attributed to a strong demand for U.S.…

A: The underlying reason strong demand for IT exports is normally attributed to strong foreign…

Q: trade plays an important role in the development of any economy. ii. If there is expansionary fiscal…

A: Economic growth  1) The economic growth refers to situation when there is a monetary increase in…

Q: While a strong currency is a possi ibl cause higher unemployment due to the attractive foreign…

A: The increase in the general price level is called inflation. Inflation is measured by the inflation…

Q: A rise in the domestic price level in an economy will lead to a а. None of these b. Rise in exports…

A: There are various factors that affect export and import of an economy. And it also depends on how…

Q: (a) Outline two factors that affect the demand for a currency and two factors that affect its…

A: The exchange rate is determined by the demand and the supply of the currency in the foreign market.…

Q: in a country the tariff rates rises and at the same time the personal income tax rates in the…

A: The total amount of money that persons and corporations in an economy have decided to save and lend…

Q: Assume there has been an increase in the volume of exports from South Africa to the United States.…

A: Given that there has been an increase in the volume of exports from South Africa to the United…

Q: 9 The fall of the exchange rate favors imports and exports a. True b. False

A: Fall of the exchange rate means depreciation of exchange rate takes place. Due to the depreciation…

Q: Suppose policy makers want to increase output (Y) and increase net exports (NX). Which of the…

A: The output is referred to as the quantity of services and goods produced in an economy during a…

Q: Explain the fall in the price of a peso using supplyanddemandcurves. Inwords, explain the…

A: The pesos depreciated, there can be two possible reasons for the depreciation of pesos, either the…

Q: 10) When policy makers decide to revalue the currency, such an action generally represents A) an…

A: When there is revaluation in the currency of the country, the fixed exchange rates brings such a…

Q: Foreign Exchange Market 1 A E[Euro return] Rates of Return (in dollar terms) An increase in the…

A: Hi Student, Thanks for posting the question. As per the guideline, we are providing the answer for…

Q: An appreciation of the U.S dollar tends to U.S net exports and shift the U.S AD curve to the O…

A: Macroeconomics analyzes the economy as a whole. It studies aggregate economic concepts such as…

Q: Explain the impacts on the Canadian dollar and it’s exchange rate done by the increase in export of…

A: Equilibrium is the point where aggregate expenditure equals income  In goods market income must…

Q: uppose tne Onited States decides to reduce export agricuiturai products, but it dde government…

A: Exchange rate, net exports, capital flow, government expenditure are all interconnected.

Q: Inflation results in: O An increase in the purchasing power of money. O A decrease in the purchasing…

A: Answer to the question is as follows:

Q: 2) Suppose a country devalues its currency. If the country's demand for imports is the price…

A: Meaning of Price Elasticity of Demand: The price elasticity of demand refers to the situation…

Q: Assume there has been an increase in the volume of exports from South Africa to the United States.…

A: Exchange rate refers to the value of one currency in terms of another currency. A currency is said…

Q: assess how an increase in import prices and an increase in export prices will affect th sa economy.

A: In an economy, any changes in the import and export will lead to influence the overall economic…

Q: Discuss the ways that running a trade deficit could result in either a healthy economy or a weaker…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 7. A weak home currency may result in the following except: A. Increased exports. В. Decreased…

A: A powerless home currency will in general expand a nation's fares and abatement its imports,…

Q: Othe U.S. imports rise. O the U.S. dollar appreciates. capital flows into the United States from…

A: *Answer:

Q: QUESTION 20Suppose there is a rise in foreign output, Y*. This rise in Y* will cause which of the…

A: The income of the foreign(Y*) will determine the export of the domestic country. There is thus an…

Q: (Figure Market for Canadian Goods with US Inputs) Use the figure to answer the question. Price Price…

A: The price of dollar with relation the currency of other nations can be determined in the foreign…

Q: C= 40 + 0.75 (Y-T), I-80, G=50, and T=60 Imports and exports are given by: IM =0.25Y and X-0.3Y*…

A: Answer; Solution :   Giventhat :   A)   AE=C+I+G+NX…

Q: sume that global warming and abnormally high temperatures in Northerm California have rendered it…

A: Note: Since you've asked multiple question, we will solve the first question for you. If you want…

Q: In the international trade, exchange rate might affect export and import. Explain briefly how the…

A: Answer to the question is as follows:

Q: Equilibrium dollarleure exchange rate will change when Select one O a all of the above b. expected…

A: The exchange rate is the rate at which the currencies are exchanged for one another. The exchange…

Q: In an open economy under flexible exchange rates where the central bank keeps money supply fixed, a…

A: The open economy refers to the economy that is free to trade with the other economies of the world…

Q: A government decides to introduce an expenditure switching measures to reduce a balance of trade…

A: Expenditure Switching Policy is the one which affects the country's expenditure composition on…

Q: Complete the sentences. The goods and services that we sell to people in other countries are The…

A: Hi, thank you for the question. As per the guidelines, we are allowed to attempt only first…

Q: Both the United States and global economies are booming. Will U.S. imports and/or exports increase?

A: The business cycle represents those periods of cyclical fluctuations that occur in an economy in…

Q: Use the foreign exchange market (Philippine pesos in the vertical axis, quantity of US dollars in…

A: Disclaimer :- As you posted multiple questions we are supposed to solve only the first one. Exchange…

Q: a. What is the value of exports? billion %24

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: last seberal yeare, Assume that on the Cwerage he inflathion in Vumam is 5% in us 2 , the Vietnamese…

A: Here, it is given that the inflation in Vietnam is 5%, and in the US, it is 2%, which implies that…

Q: ow will the following events affect exports of a country, ceteris paribus? increase decrease no…

A: Export is crucial component of aggregate demand. Rise in the export leads to rise in foreign…

Q: Suppose the United States decides to subsidize theexport of U.S. agricultural products, but it does…

A: Government spending: It refers to cash spent by the public area on the obtaining of products and…

Q: What is the structure of the exchange rate mechanism in US and Thailand? Please explain.

A: The way in which the governments could tend to influence in forex markets the relative price levels…