Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 27.1, Problem 3QQ
To determine
Equilibrium Exchange rate.
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Students have asked these similar questions
Suppose GDP in Europe and in the U.S. rises. What is the most likely outcome below to the dollar
(compared to the euro)?
a) The impact on the dollar is indeterminate
O b)
The supply of dollars will shift right
c) The demand for dollars will shift left, and the supply of dollars will shift left
d) The outcome is clear that the dollar with depreciate
B)
Given the demand and supply curves for dollars (in terms of the South African rand)
in the foreign exchange market. The outbreak of the Corona virus causes the South
African Rand to:
Select one:
a. Depreciate as the supply curve of USD shift to the left
b. Appreciate as the demand curve for USD shift to left
Depreciate as the supply curve of USD shift to the right
d. Appreciate as the demand curve for USD shift to right
e. Remain the same
Reason:
II O
Suppose that the U.S. dollar-Chinese yuan exchange rate is fixed by the U.S. and Chinese governments. Assume also that labor is immobile between the United States and China due to high transportation costs.
Which of the following situations is likely to occur if there is a simultaneous increase in the demand for U.S. goods and a decrease in the demand for Chinese goods?
a) The Chinese unemployment rate will increase, and the country will undergo hard economic times for a sustained period.
b) The U.S. unemployment rate will increase, and the country will undergo hard economic times for a sustained period.
c) The Chinese unemployment rate will initially rise but then drop as the Chinese yuan depreciates against the U.S. dollar.
d) The Chinese unemployment rate will initially rise but soon drop as unemployed Chinese move to the United States for employment.
Chapter 27 Solutions
Microeconomics
Ch. 27.1 - Prob. 1QQCh. 27.1 - Prob. 2QQCh. 27.1 - Prob. 3QQCh. 27.1 - Prob. 4QQCh. 27.A - Prob. 1ADQCh. 27.A - Prob. 1ARQCh. 27.A - Prob. 1APCh. 27 - Prob. 1DQCh. 27 - Prob. 2DQCh. 27 - Prob. 3DQ
Ch. 27 - Prob. 4DQCh. 27 - Prob. 5DQCh. 27 - Prob. 6DQCh. 27 - Prob. 7DQCh. 27 - Prob. 8DQCh. 27 - Prob. 9DQCh. 27 - Prob. 10DQCh. 27 - Prob. 11DQCh. 27 - Prob. 1RQCh. 27 - Prob. 2RQCh. 27 - Prob. 3RQCh. 27 - Prob. 4RQCh. 27 - Prob. 5RQCh. 27 - Prob. 6RQCh. 27 - Prob. 7RQCh. 27 - Prob. 8RQCh. 27 - Prob. 9RQCh. 27 - Prob. 10RQCh. 27 - Prob. 1PCh. 27 - Prob. 2PCh. 27 - Prob. 3PCh. 27 - Prob. 4PCh. 27 - Prob. 5P
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