Home / Questions / Suppose a case of French wine has a price of 1,500 euros. To a U.S. wine importer, its pr
Suppose a case of French wine has a price of 1,500 euros. To a U.S. wine importer, its price falls from $300 to $280. This could happen as a result of the dollar ___________ against the euro, which means the euro has a ____________ dollar price.
a.depreciating; higher
b.depreciating; lower
c.appreciating; higher
d.appreciating; lower
42.As the dollar appreciates, the dollar price of imported goods ___________ ultimately shifting the United States AD curve to the _______________.
a.rises; right
b.rises; left
c.falls; right
d.falls; left
43.As the dollar appreciates, the foreign price of United States goods ______________, ultimately shifting the United States AD curve ________________.
a.rises; rightward
b.rises; leftward
c.falls; rightward
d.falls; leftward
44.As the dollar depreciates, the dollar price of imported goods _________, ultimately shifting the United States AD curve __________________.
a.rises; rightward
b.rises; leftward
c.falls; rightward
d.falls; leftward
45.As the dollar depreciates, the foreign price of United States goods _________________, ultimately shifting the United States AD curve _____________.
a.rises; rightward
b.rises; leftward
c.falls; rightward
d.falls; leftward
46.Suppose the price level in Germany rises, ceteris paribus. This ________________ United States net exports, ultimately shifting the United States AD curve ____________________.
a.stimulates; rightward
b.stimulates; leftward
c.depresses; rightward
d.depresses; leftward.
47.Suppose the price level in Germany falls, ceteris paribus. This _________________ United States net exports, ultimately shifting the United States AD curve __________________.
a.stimulates; rightward
b.stimulates; leftward
c.depresses; rightward
d.depresses; leftward
48.When the United States is moving downward along the J-curve, its trade balance is ______________ as an immediate after-effect of a____________________ of the dollar.
a.improving; depreciation
b.improving; appreciation
c.worsening; depreciation
d.worsening; appreciation
49.In the short run following a depreciation of the dollar, the United States may move downward along the J-curve since it is likely that the United States
a.spends more dollars on imports.
b.spends fewer dollars on imports.
c.sells an increased dollar amount of exports.
d.sells a reduced dollar amount of exports.
50.Suppose we import only one good from Germany: cars. Initially, the exchange rate is $0.60 per euro. We import 150,000 cars annually, priced at 70,000 euros each. Then the euro rises to $0.625. Assuming the dollar value of our exports to Germany remains constant, we will stop moving down the J-curve and “turn the corner” to move upward along it once we import ______________ German cars per year.
a.fewer than 150,000
b.fewer than 144,000
c.fewer than 93,750
d.more than 150,000
e.more than 156,250
Dec 08 2019 View more View Less
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