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Unformatted text preview: a. The US would export more jeans; NO b. Indonesia would export more jeans; YES c. Indonesia would buy more US cars: YES d. US prices of jeans would rise; NO e. Indonesian prices of cars would fall; YES f. Indonesian prices of cars would rise; NO g. Some US jeans-making factories would close; YES h. Indonesia would make more cars; NO i. US car prices might rise; YES j. There would be more employment in jeans-making in Indonesia; YES k. Comparative advantage would change; NO l. One cannot answer without knowing the $/Rp exchange rate; NO....
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- Spring '05