Ch 5 Global Trade [AP & Reg]

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Unformatted text preview: U.S. b. An increase in interest rates in the U.S. c. An increase in the U.S. trade deficit with Japan d. The U.S. purchase of gold on the open market e. The sale of $2 billion dollars worth of Japanese television sets to the U.S. (71%) 5. Which of the following best explains why many U.S. economists support (71%) free trade? free a. Workers who lose their jobs can collect unemployment compensation. b. It is more important to reduce world inflation than to reduce U.S. unemployment. c. Workers are not affected; only business suffer. d. The long-run gains to consumers & some producers exceed the losses to other producers. e. Government can protect U.S. industries while encouraging free trade. Appreciation/Depreciation Practice Appreciation Practice 1. If Japan buys 10 million iPhones the dollar would (appr/depr) and our imports from Japan would (incr/decr). 2. If U.S. in. rates are increasing faster than Japan’s, the dollar would (appr/depr) and our exports would (increase/decrease). 3. If prices are dropping more in Japan...
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