EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 39.1, Problem 3QQ
To determine
Equilibrium Exchange rate.
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Students have asked these similar questions
Suppose that the U.S. dollar-Chinese yuan exchange rate is fixed by the U.S. and Chinese governments. Assume also that labor is immobile between the United States and China due to high transportation costs.
Which of the following situations is likely to occur if there is a simultaneous increase in the demand for U.S. goods and a decrease in the demand for Chinese goods?
a) The Chinese unemployment rate will increase, and the country will undergo hard economic times for a sustained period.
b) The U.S. unemployment rate will increase, and the country will undergo hard economic times for a sustained period.
c) The Chinese unemployment rate will initially rise but then drop as the Chinese yuan depreciates against the U.S. dollar.
d) The Chinese unemployment rate will initially rise but soon drop as unemployed Chinese move to the United States for employment.
Given the demand and supply curves for dollars (in terms of the South African rand)
in the foreign exchange market. The outbreak of the Corona virus causes the South
African Rand to:
Select one:
a. Depreciate as the supply curve of USD shift to the left
b. Appreciate as the demand curve for USD shift to left
Depreciate as the supply curve of USD shift to the right
d. Appreciate as the demand curve for USD shift to right
e. Remain the same
Reason:
II O
Last week, 6 swedish kroner could purchase one U.S. dollar. This week, it takes 8 to purchase one U.S. dollar. this change
U.S. aggregate demand.
in the value of the dollar will
exports from the U.S. sweden and
1. decrease; increase
2. increase; increase
3. increase; decrease
4. decrease; decrease
Chapter 39 Solutions
EP ECONOMICS,AP EDITION-CONNECT ACCESS
Ch. 39.1 - Prob. 1QQCh. 39.1 - Prob. 2QQCh. 39.1 - Prob. 3QQCh. 39.1 - Prob. 4QQCh. 39 - Prob. 1DQCh. 39 - Prob. 2DQCh. 39 - Prob. 3DQCh. 39 - Prob. 4DQCh. 39 - Prob. 5DQCh. 39 - Prob. 6DQ
Ch. 39 - Prob. 7DQCh. 39 - Prob. 8DQCh. 39 - Prob. 9DQCh. 39 - Prob. 10DQCh. 39 - Prob. 11DQCh. 39 - Prob. 1RQCh. 39 - Prob. 2RQCh. 39 - Prob. 3RQCh. 39 - Prob. 4RQCh. 39 - Prob. 5RQCh. 39 - Prob. 6RQCh. 39 - Prob. 7RQCh. 39 - Prob. 8RQCh. 39 - Prob. 9RQCh. 39 - Prob. 10RQCh. 39 - Prob. 1PCh. 39 - Prob. 2PCh. 39 - Prob. 3PCh. 39 - Prob. 4PCh. 39 - Prob. 5P
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