{"id":12399,"date":"2022-04-13T19:01:46","date_gmt":"2022-04-13T19:01:46","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/?post_type=chapter&#038;p=12399"},"modified":"2024-09-11T16:39:02","modified_gmt":"2024-09-11T16:39:02","slug":"module-16-assignment-problem-set-exchange-rates-and-international-finance","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/chapter\/module-16-assignment-problem-set-exchange-rates-and-international-finance\/","title":{"raw":"Module 16 Assignment: Problem Set \u2014 Exchange Rates and International Finance","rendered":"Module 16 Assignment: Problem Set \u2014 Exchange Rates and International Finance"},"content":{"raw":"You can click on the following link to download the problem set for this module:\u00a0<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/oerfiles\/Macroeconomics\/Problem+Sets+\/16+Exchange+Rates+and+International+Finance.docx\" target=\"_blank\" rel=\"noopener\">Exchange Rates and International Finance Problem Set.<\/a>\r\n<h2>Exchange Rates and International Finance Problem Set<sup><a href=\"#_ftn1\"><strong>[1]<\/strong><\/a><\/sup><\/h2>\r\n<ol>\r\n \t<li>Suppose that the US imports $260 million worth of goods and services and exports $160 million worth of goods and services.\r\nWhat is the value of net exports?<\/li>\r\n<\/ol>\r\n&nbsp;\r\n<ol start=\"2\">\r\n \t<li>Suppose that the US imports $260 million worth of goods and services and exports $160 million worth of goods and services.\r\nAs a result the US has a:\r\n<ol style=\"list-style-type: lower-alpha;\">\r\n \t<li>trade deficit.<\/li>\r\n \t<li>balanced trade account.<\/li>\r\n \t<li>trade surplus.<\/li>\r\n<\/ol>\r\n<\/li>\r\n<\/ol>\r\n&nbsp;\r\n<ol start=\"3\">\r\n \t<li>Other things the same, if the exchange rate changes from 2.3 Dinar per dollar to 7.6 Dinar per dollar, the dollar has\r\n<ol style=\"list-style-type: lower-alpha;\">\r\n \t<li>appreciated and buys more foreign goods.<\/li>\r\n \t<li>depreciated and buys fewer foreign goods.<\/li>\r\n \t<li>appreciated and buys fewer foreign goods.<\/li>\r\n \t<li>depreciated and buys more foreign goods.<\/li>\r\n<\/ol>\r\n<\/li>\r\n<\/ol>\r\n&nbsp;\r\n<ol start=\"4\">\r\n \t<li>Other things the same, if the exchange rate changes from 7.6 Dinar per dollar to 2.3 Dinar per dollar, the dollar has\r\n<ol style=\"list-style-type: lower-alpha;\">\r\n \t<li>appreciated and buys more foreign goods.<\/li>\r\n \t<li>depreciated and buys fewer foreign goods.<\/li>\r\n \t<li>appreciated and buys fewer foreign goods.<\/li>\r\n \t<li>depreciated and buys more foreign goods.<\/li>\r\n<\/ol>\r\n<\/li>\r\n<\/ol>\r\n&nbsp;\r\n<ol start=\"5\">\r\n \t<li>A depreciation of the U.S. exchange rate induces U.S. consumers to buy\r\n<ol style=\"list-style-type: lower-alpha;\">\r\n \t<li>fewer domestic goods and fewer foreign goods.<\/li>\r\n \t<li>more domestic goods and more foreign goods.<\/li>\r\n \t<li>more domestic goods and fewer foreign goods.<\/li>\r\n \t<li>fewer domestic goods and more foreign goods.<\/li>\r\n<\/ol>\r\n<\/li>\r\n<\/ol>\r\n&nbsp;\r\n<ol start=\"6\">\r\n \t<li>Other things the same, if the exchange rate changes from 2.3 Dinar per dollar to 7.6 Dinar per dollar, then the dollar\r\n<ol style=\"list-style-type: lower-alpha;\">\r\n \t<li>depreciates which causes US net exports to increase.<\/li>\r\n \t<li>appreciates, which causes US net exports to decrease.<\/li>\r\n \t<li>depreciates which causes US net exports to decrease.<\/li>\r\n \t<li>appreciates which causes US net exports to increase.<\/li>\r\n<\/ol>\r\n<\/li>\r\n<\/ol>\r\n&nbsp;\r\n<ol start=\"7\">\r\n \t<li>Other things the same, if the exchange rate changes from 7.6 Dinar per dollar to 2.3 Dinar per dollar, then the dollar\r\n<ol style=\"list-style-type: lower-alpha;\">\r\n \t<li>depreciates, which causes AD to shift right.<\/li>\r\n \t<li>appreciates, which causes AD to shift left.<\/li>\r\n \t<li>depreciates, which causes AD to shift left.<\/li>\r\n \t<li>appreciates which causes AD to shift right.<\/li>\r\n<\/ol>\r\n<\/li>\r\n<\/ol>\r\n&nbsp;\r\n<ol start=\"8\">\r\n \t<li>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\r\n<ol style=\"list-style-type: lower-alpha;\">\r\n \t<li>AD shifts right.<\/li>\r\n \t<li>AD is unaffected.<\/li>\r\n \t<li>AD shifts left.<\/li>\r\n<\/ol>\r\n<\/li>\r\n<\/ol>\r\n&nbsp;\r\n<ol start=\"9\">\r\n \t<li>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\r\n<ol style=\"list-style-type: lower-alpha;\">\r\n \t<li>AD shifts right.<\/li>\r\n \t<li>AD is unaffected.<\/li>\r\n \t<li>AD shifts left.<\/li>\r\n<\/ol>\r\n<\/li>\r\n<\/ol>\r\n<div>\r\n<div>\r\n\r\n&nbsp;\r\n\r\n<hr \/>\r\n\r\n<a href=\"#_ftnref1\">[1]<\/a> 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 <a href=\"https:\/\/www.desmos.com\/calculator\" target=\"_blank\" rel=\"noopener\">https:\/\/www.desmos.com\/calculator<\/a>.\r\n\r\n<\/div>\r\n<\/div>","rendered":"<p>You can click on the following link to download the problem set for this module:\u00a0<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/oerfiles\/Macroeconomics\/Problem+Sets+\/16+Exchange+Rates+and+International+Finance.docx\" target=\"_blank\" rel=\"noopener\">Exchange Rates and International Finance Problem Set.<\/a><\/p>\n<h2>Exchange Rates and International Finance Problem Set<sup><a href=\"#_ftn1\"><strong>[1]<\/strong><\/a><\/sup><\/h2>\n<ol>\n<li>Suppose that the US imports $260 million worth of goods and services and exports $160 million worth of goods and services.<br \/>\nWhat is the value of net exports?<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<ol start=\"2\">\n<li>Suppose that the US imports $260 million worth of goods and services and exports $160 million worth of goods and services.<br \/>\nAs a result the US has a:<\/p>\n<ol style=\"list-style-type: lower-alpha;\">\n<li>trade deficit.<\/li>\n<li>balanced trade account.<\/li>\n<li>trade surplus.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<ol start=\"3\">\n<li>Other things the same, if the exchange rate changes from 2.3 Dinar per dollar to 7.6 Dinar per dollar, the dollar has\n<ol style=\"list-style-type: lower-alpha;\">\n<li>appreciated and buys more foreign goods.<\/li>\n<li>depreciated and buys fewer foreign goods.<\/li>\n<li>appreciated and buys fewer foreign goods.<\/li>\n<li>depreciated and buys more foreign goods.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<ol start=\"4\">\n<li>Other things the same, if the exchange rate changes from 7.6 Dinar per dollar to 2.3 Dinar per dollar, the dollar has\n<ol style=\"list-style-type: lower-alpha;\">\n<li>appreciated and buys more foreign goods.<\/li>\n<li>depreciated and buys fewer foreign goods.<\/li>\n<li>appreciated and buys fewer foreign goods.<\/li>\n<li>depreciated and buys more foreign goods.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<ol start=\"5\">\n<li>A depreciation of the U.S. exchange rate induces U.S. consumers to buy\n<ol style=\"list-style-type: lower-alpha;\">\n<li>fewer domestic goods and fewer foreign goods.<\/li>\n<li>more domestic goods and more foreign goods.<\/li>\n<li>more domestic goods and fewer foreign goods.<\/li>\n<li>fewer domestic goods and more foreign goods.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<ol start=\"6\">\n<li>Other things the same, if the exchange rate changes from 2.3 Dinar per dollar to 7.6 Dinar per dollar, then the dollar\n<ol style=\"list-style-type: lower-alpha;\">\n<li>depreciates which causes US net exports to increase.<\/li>\n<li>appreciates, which causes US net exports to decrease.<\/li>\n<li>depreciates which causes US net exports to decrease.<\/li>\n<li>appreciates which causes US net exports to increase.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<ol start=\"7\">\n<li>Other things the same, if the exchange rate changes from 7.6 Dinar per dollar to 2.3 Dinar per dollar, then the dollar\n<ol style=\"list-style-type: lower-alpha;\">\n<li>depreciates, which causes AD to shift right.<\/li>\n<li>appreciates, which causes AD to shift left.<\/li>\n<li>depreciates, which causes AD to shift left.<\/li>\n<li>appreciates which causes AD to shift right.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<ol start=\"8\">\n<li>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\n<ol style=\"list-style-type: lower-alpha;\">\n<li>AD shifts right.<\/li>\n<li>AD is unaffected.<\/li>\n<li>AD shifts left.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<ol start=\"9\">\n<li>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\n<ol style=\"list-style-type: lower-alpha;\">\n<li>AD shifts right.<\/li>\n<li>AD is unaffected.<\/li>\n<li>AD shifts left.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<div>\n<div>\n<p>&nbsp;<\/p>\n<hr \/>\n<p><a href=\"#_ftnref1\">[1]<\/a> 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 <a href=\"https:\/\/www.desmos.com\/calculator\" target=\"_blank\" rel=\"noopener\">https:\/\/www.desmos.com\/calculator<\/a>.<\/p>\n<\/div>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-12399\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Problem Set Assignment: Exchange Rates and International Finance. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":428269,"menu_order":48,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Problem Set Assignment: Exchange Rates and International Finance\",\"author\":\"\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-12399","chapter","type-chapter","status-publish","hentry"],"part":12174,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/pressbooks\/v2\/chapters\/12399","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/wp\/v2\/users\/428269"}],"version-history":[{"count":1,"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/pressbooks\/v2\/chapters\/12399\/revisions"}],"predecessor-version":[{"id":12400,"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/pressbooks\/v2\/chapters\/12399\/revisions\/12400"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/pressbooks\/v2\/parts\/12174"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/pressbooks\/v2\/chapters\/12399\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/wp\/v2\/media?parent=12399"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/pressbooks\/v2\/chapter-type?post=12399"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/wp\/v2\/contributor?post=12399"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/wp\/v2\/license?post=12399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}