Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter P8, Problem 1KC
To determine
The cause for the rightward shift in Country U’s demand for Country J’s Yen.
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Question 10
Which statement is supported by the information in the table?
Export and Import Table
Canada
United States
Top Export Partners
n
Export Partner
D
United States
United Kingdom
Canada
Mexico
China
Japan
Percent of Exports
73.70%
4.20%
19.00%
13.30%
7.00%
4.50%
Top Import Partners
Import Partner
United States
China
Mexico
China
Canada
Mexico
Japan
Germany
B The United States exports more goods to China than to Canada.
Percent of Imports
49.50%
Trade with China disrupts trade between the United States and Canada.
10.80%
A Canada and the United States are each the chief exporting nation to the other.
5.50%
18.40%
14.20%
11.70%
5.80%
4.40%
Canada imports more goods from the United States than it exports to the United States.
Question 3 (Supply and Demand)
Evaluate the effect of the following on the Canada-US exchange rate:
a) A tariff is placed on the import of Canadian goods into the US.
b) The U.S. stock market is expected to significantly increase in value.
c) The saving rate in Canada (% of income saved) significantly increases.
d) The US significantly increases taxes on capital investment.
e) A decrease in the price of flights to Florida in February.
News Analysis: Exchange rates hold the key to trade between Japan and the United States (NEW)
3. Exchange rates and U.S. exports: A graphical relationship
The following graph shows exports from the United States to Japan. (Note: U.S. exports are measured in yen on this graph, which will enable you to
see U.S. exports on the same graph as Japanese exports in a later problem.)
EXCHANGE RATE (Dollars per yen)
Exports from the U.S.
Exports from the U.S.
?
(
·
X
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