08 Jun Question 1. Show the effect of dollar app
Question
1. Show the effect of dollar appreciation and depreciation with the yen on the price of U.S. exports and imports by updating Table 15.2, as shown in the updated table
TABLE 15.2 (updated) Effect of Dollar Appreciation and Depreciation
On U.S. Exports and Imports
R = EURO/$ DOMESTIC JAN 09: JUNE 09: EFFECT ON EXPORTS (X)
PRICE R = 0.76 R = 0.71 AND IMPORTS (M)
U.S. exports:
Televisions $1,000
U.S. imports:
European cars Euro 25,000
JAN 08: JAN 09:
R = 0.68 R = 0.76
U.S. exports:
Televisions $1,000
U.S. imports:
European cars Euro 25,000
2. Update the controversy over the value of the Chinese yuan in foreign currency markets. Is China still using central bank foreign exchange policy to maintain the value of the yuan? What is the current policy of the United States on this issue?
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