Homework 9 - a. When a Brazilian citizen purchases stock in...

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PRINCIPLES OF MACROECONOMICS, HOMEWORK 9      DUE 11/19/08 or 11/20/08 NAME ______________________________________________________________ 1.  The currency of Wrexington is called the springer.  The currency of Charlieville is called the cocker.  The  price of Wrexington’s beef is 8 springers per pound.  The price of Charlieville’s beef is 2 cockers per pound.  Wrexington’s nominal exchange rate is 12 cockers per springer.    Wrexington’s real exchange rate is ______________________________________________. 2.  Fill in the following blanks with “increase”, “decrease”, or “do not change”: When an American citizen takes a vacation in China, US net exports _______________ and  Chinese net exports _______________. 3.  Fill in the following blanks with “increases”, “decreases”, or “does not change”:
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Unformatted text preview: a. When a Brazilian citizen purchases stock in Wal-Mart, US net capital outflow _______________, US demand for loanable funds _______________, Brazilian net capital outflow _______________, and Brazilian demand for loanable funds _______________. b. When an American firm builds a factory in Turkey, US net capital outflow ______________. 4. Fill in the following blanks with happy or unhappy: a. When the US dollar depreciates, an Italian citizen planning a trip to the United States is _______________. b. When the US dollar depreciates, an American firm trying to purchase property in Zimbabwe is _______________....
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This note was uploaded on 09/15/2011 for the course 06E 002 taught by Professor Kim during the Spring '08 term at University of Iowa.

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Homework 9 - a. When a Brazilian citizen purchases stock in...

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