4. Deriving net exports By definition, net exports from Japan are equal to exports from Japan minus imports into Japan. In a hypotheticall two-country world, imports into Japan are equal to exports from the United States. So the value for net exports from Japan is equal to exports from Japani minus exports from the United States, Graphically, at each exchange rate, the value for net exports is the horizontal distance from U.S. exports to Japanese exports. Use the graph input tool to answer the following questions. You will not be graded on any changes you make to this graph. (Note: To avoid dealing with decimal places, this calculator reports the price of yen in terms of dollars per 1,000 yen. That is, the price on the vertical axis is the dollar price of a 1,000-yen note instead of a single yen. As you have already seen, a price of 8 dollars per 1,000 yen is the same as 125 yen per dollar. Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.) EXCHANGE RATE (Dalars per 1,000 yen Graph Input Tool Price $2 Exports from us. 18 (Dollars per 1,000 yen) Exports from Japan 18 (Trillion yen) Exports from U.S. (Than Yen) 12 TO NX from Japan (Trillion yen) 16 Exports from Japan D. • 10 12 14 16 18 20 YEN (Trilion) Suppose that the price of yen is $5 per 1,000 yen. Net exports from Japan will be trillion yen Suppose that the price of yen is $7 per 1,000 yen. Net exports from Japan will be trillion yen. Based on the data from the previous two parts of this problem, use the blue line (circle symbol) to plot net exports for Japan as a function of the price of yen on the following graph. (Note: Select and drag the curve from the palette to the desired position on the graph.) PRICE OF YEN (Delers per 1,000 yan) YEN (Trillon) NX from Japan The previous graph you constructed should show that net exports from Japan would be negative if the price of yen increased to a high enough level. such as an amount greater than $10 per 1,000 yen. If you convert this price into the form typically quoted in the newspaper, this price corresponds to yen per dollar

4. Deriving net exports By definition, net exports from Japan are equal to exports from Japan minus imports into Japan. In a hypotheticall two-country world, imports into Japan are equal to exports from the United States. So the value for net exports from Japan is equal to exports from Japani minus exports from the United States, Graphically, at each exchange rate, the value for net exports is the horizontal distance from U.S. exports to Japanese exports. Use the graph input tool to answer the following questions. You will not be graded on any changes you make to this graph. (Note: To avoid dealing with decimal places, this calculator reports the price of yen in terms of dollars per 1,000 yen. That is, the price on the vertical axis is the dollar price of a 1,000-yen note instead of a single yen. As you have already seen, a price of 8 dollars per 1,000 yen is the same as 125 yen per dollar. Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.) EXCHANGE RATE (Dalars per 1,000 yen Graph Input Tool Price $2 Exports from us. 18 (Dollars per 1,000 yen) Exports from Japan 18 (Trillion yen) Exports from U.S. (Than Yen) 12 TO NX from Japan (Trillion yen) 16 Exports from Japan D. • 10 12 14 16 18 20 YEN (Trilion) Suppose that the price of yen is $5 per 1,000 yen. Net exports from Japan will be trillion yen Suppose that the price of yen is $7 per 1,000 yen. Net exports from Japan will be trillion yen. Based on the data from the previous two parts of this problem, use the blue line (circle symbol) to plot net exports for Japan as a function of the price of yen on the following graph. (Note: Select and drag the curve from the palette to the desired position on the graph.) PRICE OF YEN (Delers per 1,000 yan) YEN (Trillon) NX from Japan The previous graph you constructed should show that net exports from Japan would be negative if the price of yen increased to a high enough level. such as an amount greater than $10 per 1,000 yen. If you convert this price into the form typically quoted in the newspaper, this price corresponds to yen per dollar

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 9SCQ: How does the bottom portion of Figure 23.3, showing the international flow of investments and...

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