Module 16 Assignment: Problem Set — Exchange Rates and International Finance

You can click on the following link to download the problem set for this module: Exchange Rates and International Finance Problem Set.

Exchange Rates and International Finance Problem Set[1]

  1. Suppose that the US imports $260 million worth of goods and services and exports $160 million worth of goods and services.
    What is the value of net exports?

 

  1. Suppose that the US imports $260 million worth of goods and services and exports $160 million worth of goods and services.
    As a result the US has a:

    1. trade deficit.
    2. balanced trade account.
    3. trade surplus.

 

  1. Other things the same, if the exchange rate changes from 2.3 Dinar per dollar to 7.6 Dinar per dollar, the dollar has
    1. appreciated and buys more foreign goods.
    2. depreciated and buys fewer foreign goods.
    3. appreciated and buys fewer foreign goods.
    4. depreciated and buys more foreign goods.

 

  1. Other things the same, if the exchange rate changes from 7.6 Dinar per dollar to 2.3 Dinar per dollar, the dollar has
    1. appreciated and buys more foreign goods.
    2. depreciated and buys fewer foreign goods.
    3. appreciated and buys fewer foreign goods.
    4. depreciated and buys more foreign goods.

 

  1. A depreciation of the U.S. exchange rate induces U.S. consumers to buy
    1. fewer domestic goods and fewer foreign goods.
    2. more domestic goods and more foreign goods.
    3. more domestic goods and fewer foreign goods.
    4. fewer domestic goods and more foreign goods.

 

  1. Other things the same, if the exchange rate changes from 2.3 Dinar per dollar to 7.6 Dinar per dollar, then the dollar
    1. depreciates which causes US net exports to increase.
    2. appreciates, which causes US net exports to decrease.
    3. depreciates which causes US net exports to decrease.
    4. appreciates which causes US net exports to increase.

 

  1. Other things the same, if the exchange rate changes from 7.6 Dinar per dollar to 2.3 Dinar per dollar, then the dollar
    1. depreciates, which causes AD to shift right.
    2. appreciates, which causes AD to shift left.
    3. depreciates, which causes AD to shift left.
    4. appreciates which causes AD to shift right.

 

  1. Other things the same, if the exchange rate changes from 2.3 Dinar per dollar to 7.6 Dinar per dollar, then as a result
    1. AD shifts right.
    2. AD is unaffected.
    3. AD shifts left.

 

  1. Other things the same, if the exchange rate changes from 7.6 Dinar per dollar to 2.3 Dinar per dollar, then as a result
    1. AD shifts right.
    2. AD is unaffected.
    3. AD shifts left.

 

[1] This assignment by Lumen Learning is licensed under a Creative Commons Attribution 4.0 International License. You can access an alternative means to plotting points at https://www.desmos.com/calculator.