{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Ch 5 Global Trade [AP & Reg]

Value answer 2 due to the decrease in supply of us

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: f the exchange rate changes from $1=Y200 to $1=Y100, we can say the dollar has (apprec/deprec) in value & Japan’s exports to the U.S. (incr/decr). 31. Depreciation of the euro relative to the U.S. dollar would make a trip by an American to Europe (more/less) expensive. 32. Suppose that yesterday $1 would buy 800 South Korean won, but today will buy 810 won. We can conclude that the won has (depr/apprec) in value. Higher I. R.’s or Lower PL Appreciate the S2 D2 D1 S1 200 Price of the Yen depreciates as it takes more Yen to buy a dollar. Yen depreciates even more as it takes even more to buy a dollar. U.S Price level Decreases or U.S. Interest rates Increase 150 100 D D 50 0 Quantity of Dollars Japanese buy more U.S. X U.S. citizens buy M fewer Japanese A Increase in the demand for ’s Decrease in the supply of ’s for Appreciates Double Shifts: Although there are double shifts in some situations, Double Shifts: it doesn’t change the appreciation/depreciation answers. So – let’s just concentrate on the demand curve for each situa...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern