BOP Economic Effects Practice Problem Set 1 sol

BOP Economic Effects Practice Problem Set 1 sol - Not...

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Economic Effects of Balance of Payment Changes: A Summary US exports to foreign country Foreign imports from US US imports from foreign country Foreign exports to US US BOT with foreign country US trade deficit with foreign country US inflation is higher than foreign inflation Decrease Increase Decrease Increase US inflation is lower than foreign inflation Increase Decrease Increase Decrease US GNP increasing, foreign GNP constant Not Change Increase Decrease Increase US GNP decreasing, foreign GNP constant Not Change Decrease Increase Decrease US dollar appreciates / foreign currency depreciates Decrease Increase Decrease Increase US dollar depreciates / foreign currency appreciates Increase Decrease Increase Decrease US Govt increases tariffs on foreign goods Not Change Decrease Increase Decrease US Govt decreases tariffs on foreign goods
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Unformatted text preview: Not Change Increase Decrease Increase Foreign Govt increases tariffs on US Decrease Not Change Decrease Increase Foreign Govt decreases tariffs on US Increase Not Change Increase Decrease US Govt increases quotas on foreign goods Not Change Increase Decrease Increase US Govt decreases quotas on foreign goods Not Change Decrease Increase Decrease Foreign Govt increases quotas on US Increase Not Change Increase Decrease Foreign Govt decreases quotas on US Decrease Not Change Decrease Increase US export US import US dollar Foreign currency US BOT increases = US trade deficit decreases Increase Decrease appreciates depreciates US BOT decreases = US trade deficit increases Decrease Increase depreciates appreciates...
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This note was uploaded on 04/15/2011 for the course FINA 5500 taught by Professor Staff during the Spring '08 term at North Texas.

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