Suppose that on February 1, 2019, a marble statue handmade in Mexico is priced at 20,000 MXN. The approximate Canadian dollar price of the statue would be If the nominal exchange rate for the Canadian dollar-U.S. dollar, rises from $1.31 to $1.41 per U.S. dollar, the Canadian dollar value, or , relative to the U.S. dollar. in

Suppose that on February 1, 2019, a marble statue handmade in Mexico is priced at 20,000 MXN. The approximate Canadian dollar price of the statue would be If the nominal exchange rate for the Canadian dollar-U.S. dollar, rises from $1.31 to $1.41 per U.S. dollar, the Canadian dollar value, or , relative to the U.S. dollar. in

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter31: Open-Economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 8PA

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1. Pricing foreign goods The nominal exchange rate is the price of one currency in terms of another currency. A nominal exchange rate specifies how many units of one country's currency are needed to buy one unit of another country's currency. Suppose the following table forecasts nominal exchange rate data for February 1, 2050, in terms of Canadian dollars per unit of foreign currency. Use the information in the table to answer the questions that follow. Foreign Currency United States dollar (USD) Euro (EUR) Japanese yen (JPY) Mexican peso (MXN) United Kingdom pound (GBP) Cost of One Unit of Foreign Currency (Dollars) 1.31 1.50 0.012 0.068 1.72 Suppose that on February 1, 2050, a marble statue handmade in Mexico is priced at 20,250 MXN. The approximate Canadian dollar price of the statue would be If the nominal exchange rate for the Canadian dollar-Mexican peso falls from $0.068 to $0.055 per Mexican peso, the Canadian dollar in value, or , relative to the Mexican peso.
Nov. 2015 exchange rate (per U.S. dollar) 0.7466 100.2 Nov. 2016 exchange rate (per U.S. dollar) 0.8009 114.61 Currency Euro Japanese yen Canadian dollar 1.0436 L1331 The table above shows the exchange rates between various currencies and the U.S. dolar. Between 2015 and 2016, the U.S. dollar against the Japanese yen. O depreciated; depreciated • appreciated; appreciated against the Euro and O appreciated; depreciated O depreciated; appreciated
1. Pricing foreign goods The nominal exchange rate is the price of one currency in terms of another currency. A nominal exchange rate specifies how many units of one country's currency are needed to buy one unit of another country's currency. Suppose the following table forecasts nominal exchange rate data for June 13, 2023, in terms of U.S. dollars per unit of foreign currency. Use the information in the table to answer the questions that follow. Foreign Currency Cost of One Unit of Foreign Currency (Dollars) Canadian dollar (CAD) 0.7950 Euro (EUR) 1.2035 Japanese yen (JPY) 0.009126 Mexican peso (MXN) 0.0920 United Kingdom pound (GBP) 1.8011 Suppose that on June 13, 2023, a marble statue handmade in the United Kingdom is priced at 570 GBP. The approximate U.S. dollar price of the statue would be______ . If the nominal exchange rate for the U.S. dollar–Japanese yen falls from $0.009126 to $0.0077571 per Japanese yen, the U.S. dollar________ in value, or______,…
1. Pricing foreign goods The nominal exchange rate is the price of one currency in terms of another currency. A nominal exchange rate specifies how many units of one country's currency are needed to buy one unit of another country's currency. Suppose the following table forecasts nominal exchange rate data for June 13, 2023, in terms of U.S. dollars per unit of foreign currency. Use the information in the table to answer the questions that follow. Foreign Currency Canadian dollar (CAD) Euro (EUR) Japanese yen (JPY) Mexican peso (MXN) United Kingdom pound (GBP) Cost of One Unit of Foreign Currency (Dollars) 0.7950 1.2035 0.009126 0.0920 1.8011 Suppose that on June 13, 2023, an ornamental bookcase handmade in Germany is priced at 840 EUR. The approximate U.S. dollar price of the bookcase would be If the nominal exchange rate for the U.S. dollar-Mexican peso falls from $0.092 to $0.0782 per Mexican peso, the U.S. dollar value, or relative to the Mexican peso. in
1. Pricing foreign goods The nominal exchange rate is the price of one currency in terms of another currency. A nominal exchange rate specifies how many units of one country's currency are needed to buy one unit of another country's currency. Suppose the following table presents nominal exchange rate data for November 3, 2019, in terms of U.S. dollars per unit of foreign currency. Use the information in the table to answer the questions that follow. Foreign Currency Brazilian real (BRL) Canadian dollar (CAD) Euro (EUR) Japanese yen (JPY) Mexican peso (MXN) United Kingdom pound (GBP) Cost of One Unit of Foreign Currency (Dollars) 0.3329 0.7176 1.129 0.008398 0.0934 1.603 Suppose that on November 3, 2019, an antique woven tapestry handmade in Canada is priced at CAD 4,190. The approximate U.S. dollar price of the tapestry would be If the nominal exchange rate for the U.S. dollar-Canadian dollar falls from $0.7176 to $0.46644 per Canadian dollar, the Canadian dollar , relative to the U.S.…
4. Pricing foreign goods The exchange rate is the price of one currency in terms of another currency. An exchange rate specifies how many units of one country's currency are needed to buy one unit of another country's currency. Suppose the following table forecasts exchange rate data for March 16, 2018, in terms of U.S. dollars per unit of foreign currency. Use the information in the table to answer the questions that follow. Foreign Currency Lithuanian litas (LTL) Canadian dollar (CAD) Euro (EUR) Mexican peso (MXN) United Kingdom pound (GBP) Cost of One Unit of Foreign Currency (Dollars) 0.4067 0.7950 1.2035 0.0920 1.8011 Suppose that on March 16, 2018, an antique woven rug handmade in Lithuania is priced at LTL 2,560. The approximate U.S. dollar price of the rug would be If the exchange rate for the U.S. dollar-Lithuanian litas falls from $0.4067 to $0.366 per Lithuanian litas, the U.S. dollar , relative to the Lithuanian litas. in value, or
4. Pricing foreign goods The exchange rate is the price of one currency in terms of another currency. An exchange rate specifies how many units of one country's currency are needed to buy one unit of another country's currency. Suppose the following table forecasts exchange rate data for May 21, 2018, in terms of U.S. dollars per unit of foreign currency. Use the information in the table to answer the questions that follow. Foreign Currency Lithuanian litas (LTL) Canadian dollar (CAD) Euro (EUR) Mexican peso (MXN) Cost of One Unit of Foreign Currency (Dollars) 0.3329 0.7176 1.129 0.0934 United Kingdom pound (GBP) 1.603 Suppose that on May 21, 2018, an ornamental bookcase handmade in Mexico is priced at MXN 10,760. The approximate U.S. dollar price of the bookcase would be If the exchange rate for the U.S. dollar-Mexican peso falls from $0.0934 to $0.0747 per Mexican peso, the U.S. dollar relative to the Mexican peso. in value, or
1. Pricing foreign goods The nominal exchange rate is the price of one currency in terms of another currency. A nominal exchange rate specifies how many units of one country's currency are needed to buy one unit of another country's currency. Suppose the following table presents nominal exchange rate data for November 26, 2014, in terms of U.S. dollars per unit of foreign currency. Use the information in the table to answer the questions that follow. Foreign Currency Brazilian real (BRL) Canadian dollar (CAD) Euro (EUR) Japanese yen (JPY) Mexican Peso (MXN) United Kingdom pound (GBP) Cost of One Unit of Foreign Currency (Dollars) 0.5148 0.9213 1.3457 0.008226 0.0926 1.9695 Suppose that on November 26, 2014, a marble statue handmade in Canada is priced at CAD 1,700. The approximate U.S. dollar price of the statue would be If the nominal exchange rate for the U.S. dollar-euro rises from $1.3457 to $1.547555 per euro, the euro in value, or relative to the U.S. dollar.