[Related to the Economics in Practice on p. 390] Go to www.federalreserve.gov and under Recent Statistical Releases, click on “Foreign Exchange Rates.” Click on “Historical data” to find the exchange rates between the U.S. dollar and the euro, the Canadian dollar, the Japanese yen, and the Chinese yuan at the beginning of 2008 and at the end of 2008. Did the U.S. dollar appreciate or depreciate against these currencies during 2008?

Go to www.census.gov and find the value of U.S. exports, imports and the U.S trade balance at the beginning of 2008 and at the end of 2008. Did these values increase or decrease during 2008? Explain how the changes in the exchange rates may have had an impact on the changes in U.S. exports, imports and the trade balance.