Create an Account

Already have account?

Forgot Your Password ?

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 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

Answer (UnSolved)

question Get Solution

Related Questions