D Question 9 1 pts When the exchange rate changes so that the U.S. dollar deprec
ID: 1122199 • Letter: D
Question
D Question 9 1 pts When the exchange rate changes so that the U.S. dollar depreciate relative to the Japanese yen O more Japanese yens are required to buy a dollar O Japanese goods and services become more expensive for the U.S. citizens. there will be an increase in Japanese goods and services exported to the US. fewer U.S. goods and services will be demanded by the Japanese. Question 10 1 pts Refer to the table below. If monetary authorities in the European Union decided to "peg" or fix the exchange rate for the euro at $1.30, then there would Qd of Euros (in billions) $ Price of Euro Qs of Euros (in billions) 1.60 1.50 1.40 1.30 1.20 10 15 20 25 30 30 25 20 15 10 O be a surplus of 30 billion euros. O be a shortage of 20 billion euros. 0 the euro would depreciate in value. ( the dollar would appreciate in value.Explanation / Answer
9> b
Reason
As USD is depriciated wrt Yen, Japanese good will cost more in USD now.
10> c
Reason
As the price 1.3 is less than the equilibrium price of 1.4, thus there will be a depreciation in value as the demand will exceed the supply for Euro.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.