Question 5 [Consider a small open economy such as Australia. If Australia’s saving rate (gross domestic saving as a % of GDP) is 15% , while its investment rate (domestic investment as a % of GDP) is 25%, the economy will experience a trade surplus, meaning that receipts from exports exceed expenditure on imports. (100 words)] Your answer: [True/False/Uncertain and explain why]

Question 5 [Consider a small open economy such as Australia. If Australia’s saving rate (gross domestic saving as a % of GDP) is 15% , while its investment rate (domestic investment as a % of GDP) is 25%, the economy will experience a trade surplus, meaning that receipts from exports exceed expenditure on imports. (100 words)] Your answer: [True/False/Uncertain and explain why]

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter29: Exchange Rates And International Capital Flows

Section: Chapter Questions

Problem 27CTQ: Suppose a country has an overall balance of trade so that exports of goods and services equal...

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Question 5 [Consider a prosperous open economy such as Singapore. If Singapore’s saving rate (gross domestic saving as a % of GDP) is 25%, while its investment rate (domestic investment as a % of GDP) is 20%, the economy will experience a trade surplus, meaning that receipts from exports exceed expenditure on imports. Your answer: [True/False/Uncertain and explain why]
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
17. 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 (Yen) Exports from the U.S. ? Referring to the graph, why does the line showing exports from the United States slope upward? The lower the price of the yen in term of dollars, the higher the exports from the United States to Japan. The higher the price of the yen in term of dollars, the higher the exports from Japan to the United States. The higher the price of the yen in term of dollars, the lower the exports from the United States to Japan. The lower the price of the yen in term of dollars, the lower the exports from the United States to Japan. Suppose that the exchange rate goes from $10 per 1,000 yen to $8 per 1,000 yen. On the previous…
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.) [Please see the image] Referring to the graph, why does the line showing exports from the United States slope upward? 1. The lower the price of the yen in term of dollars, the lower the exports from the United States to Japan. 2. The higher the price of the yen in term of dollars, the higher the exports from Japan to the United States. 3. The higher the price of the yen in term of dollars, the lower the exports from the United States to Japan. 4. The lower the price of the yen in term of dollars, the higher the exports from the United States to Japan. Suppose that the exchange rate goes from $10 per 1,000 yen to $8 per 1,000 yen. On the previous graph, adjust the…
Question 8 (1 point) Listen Consider two different scenarios. In one, a small country imposes a $5 tariff on cars. In the other, a large country imposes a $5 tariff on cars. Which of the following statements regarding the new domestic equilibrium price is true? The small country's price after the tariff would be at least as high as the large country's price after the tariff. The small country's price after the tariff would be no greater than the large country's price after the tariff. The small country's price after the tariff would be equal to the large country's price after the tariff. It is impossible to tell which would be greater.
Suppose a country has an overall balance of trade so that exports of goods and services equal imports of goods and services. Does that imply that the country has balanced trade with each of its trading partners?
11. Question 11 options: ----------------Measures the value of production that occurs within a country's borders without regard to whether the production is done by domestic or foreign factors of production.
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.
Jiz What are the effects on U.S. imports and exports when the U.S. experiences economic growth stronger than its major trading partners? Multiple Choice There will be no effect on US imports and exports. U.S. exports will increase more than U.S. imports. US imports will decrease, but U.S. exports will increase. Saved US imports will increase more than U.S. exports. Note: don't use chat bot.
QUESTION 7 (Trade & Exchange rates) a. Rich nations have nothing to gain from trading with poorer nations? Do you agree with this statement? State why or why not using an appropriate explanation and/or diagram if necessary. b. The World Trade Organization's (WTO) policy of trade liberalization is in the best economic interest of small developing countries. Do you agree with this statement? State why or why not using an appropriate explanation and/or diagram if necessary. c. If the exchange rate of Trinidad and Tobago depreciates what would be the most likely impact on exports, imports and the trade balance of the country.
1. Measuring the openness of an economy The following table contains information on two hypothetical nations, Ravenia and Bearistan, that exist as part of a larger hypothetical international economy. Use the information provided to compute the openness measure for each country. Exports Imports GDP Country (Billions of dollars) (Billions of dollars) (Billions of dollars) Openness Measure Ravenia 179 56 125 Bearistan 54 58 64 Based on your calculations, you can conclude that Ravenia is relatively open than Bearistan.
The graph depicts the market for oil, with the assumption that the United States can import any amount of oil it chooses at the world free trade price. Adjust the graph to reflect what happens when a 50% import tax is imposed on oil. (graph in the image) Approximately how many million barrels are imported before the tax is imposed? imported oil:_________million barrels Approximately how many million barrels are imported after the tax is imposed? imported oil:________million barrel