3. Explain the effects of the following change in the exchange rate:

Originally the $1 = 10 yuan; now the $1 = 5 yuan

a.Is the dollar becoming weaker or stronger? _________________

Calculate how this change affected the price of U.S. import and exports:

A Chinese car that costs 200,000 yuan what will it cost U.S. buyers in dollars?

b.When $1 = 10 yuan: _____________ dollars/yuan (bold or circle one)

c.When $1 = 5 yuan: ______________ dollars/yuan (bold or circle one)

A U.S. bushel of rice cost $10, what will it cost Chinese buyers in yuan?

d.When $1 = 10 yuan: _______ dollars/yuan (bold or circle one)

e.When $1 = 5 yuan:________ dollars/yuan (bold or circle one)

f. From this change the quantity of U.S. imports will increase/decrease (bold or circle one) and exports will increase/decrease (bold or circle one)