Homework SourseChapter 15 Technical Question 1 1 Show the effect of dollar
Chapter 15, Technical Question 1:
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.
Solution
Hi,
Earlier i had answered a similar question. But in that question it was EURO instead of YEN. Since your table is not given. I am submiting the same answer. Please check if it will help you.
| R = EURO/$ | Domestic price | Jan 09: R = 0.76 | June 09 R = 0.71 | Effcect on X & M | |
| US exports:TV | $1,000 | $760 | $710 | X decreases | |
| US Imports:Car | EURO 25,000 | $32,895 | $35,211 | M decreases | |
| Domestic price | Jan 08: R = 0.68 | Jan 09: R = 0.76 | |||
| $1,000 | $680 | $760 | X increases | |
| US Imports:Car | EURO 25,000 | $36,765 | $32,895 | M increases |
