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Assume the United States has the following import / export volumes and prices. It undertakes a major devaluation of the dollar, say 1 8 %
Assume the United States has the following importexport volumes and prices. It undertakes a major "devaluation" of the dollar, say on average against all major trading partner currencies hence the dollar goes from a value of $fc to a value of $fc
Initial spot exchange rate, $fc
Price of exports, dollars $
Price of imports, foreign currency fc
Quantity of exports, units
Quantity of imports, units
Percentage devaluation of the dollar
What is the predevaluation trade balance?
What is the postdevaluation trade balance?
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