9. A country in Southeast Asia states it gross domestic product (DGP) in terms of yen. Assume that last year its GDP was 50 billion yen when one U.S. dollar could beexchanged for 120 yen.a. Determine the country’s GDP in terms of U.S. dollars for last year. b. Assume the GDP increases to 55 billion yen for this year, while the dollar value of one yen is now $0.01. Determine the county’s GDP in terms of U.S. dollars for this year. $55 billion X $0.01 = c. Show how your answer in (b) would change if one U.S. dollar could be exchanged for 110 yen. Chapter 8 – Discussion questions 1. What is the interest rate, and how is it determined? 6. What are the main sources of loanable funds? Indicate and briefly discuss the factors that affect the supply of loanable funds.8. What are the factors, in addition to supply and demand relationships, that determine market interest rates?23. How can a change in money supply lead to a change in the price level?
4 25. What is meant by default risk premium (DRP)?
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- Fall '15
- Debt, United States dollar, gross domestic product