Em)s ', @ docs.google.com @ E () R STV (O (O IR unit1 [~ R [ 9. Calculate national savings. Show your work. * 1 point Your answer 10. Calculate investment spending. Show your work. * 1 point Your answer 11. Assume that Sowelltopia opens their economy and the capital inflows ~ * 1 point are $6 trillion and the capital outflows are $1 trillion. Calculate the total savings available to borrowers. Show your work. Your answer 12. Did the real interest rate in Sowelltopia most likely increase, decrease, * 1 point or stay the same when Sowelltopia opened its economy? Explain. Your answer Copyright Jacob Clifford. Annual license required. Do not use unless you have purchased a license @ docs.google.com = 6.1Bala... = = 1. What is the difference between a trade deficit and a trade surplus? * 1 point Your answer 2. What is the difference between the current account (CA) and the capital * 1 point and financial account (CFA)? Your answer 3. The balance of trade makes up a large portion of the current account, but * 1 point it is not quite everything. What else is included in the current account? Your answer Part 2 - Practice Part 2: Practice- Identify whether each transaction is part of the current (CA) or capital and financial account (CFA). 4. A person in Canada sends money back home to their family in Jamaica. * 1 point (O Currentaccount (CA) O Capital and financial account (CFA) G h docs.google.com + S S |6.3- Th... E S S Part 1 - Check your Understanding Part 1 - Check your Understanding - Assume Exch S that the US and China are trading partners. The Rate graph below shows the demand and supply for Chinese yuan and the exchange rate in dollars. @Copyright Jacob Clifford 2020. www.ACDCecon.com Annual license required. Do not use unless you have purchased a license $7 Economics Worksheets- www.acdcecon.com $6 $5 Q4 Q5 1. Do US citizens or Chinese citizens most likely demand Chinese yuan? * 1 point Explain. Your answer 2. Do US citizens or Chinese citizens most likely supply Chinese yuan? * 1 point Explain. Your answer 3. Explain why the demand curve for yuan is downward-sloping. * 1 point Your answer@ docs.google.com 4. Explain why the supply curve is upward-sloping. * 1 point Your answer 5. Assume that the exchange rate for yuan was $5 dollars. Would this result * 1 point in a shortage or a surplus of yuan? Use the graph to explain your answer. Your answer 6. Assume that people in China wanted more American goods and services. * 1 point Show what would happen on the graph and identify if the yuan would appreciate or depreciate. Your answer Part 2 - Graph It Part 2 Graph It Draw correctly labeled graphs of the foreign exchange market for both the U.S. dollar (USD) and the Canadian dollar (CAD) then answer the questions. Copyright Jacob Clifford 2020. www.ACDCecon.com Annual license required. Do not use unless you have purchased a license 7. Show what will happen on both graphs if Canadians prefer vacationing in * 1 point the US. Identify what will happen to the value of the USD and the value of the CAD. & Add file @ docs.google.com Part 1 Draw It Macro Topic 6.4 Effect of Policies on Exchange Rates Part 1 Draw It- For each of the following questions, show what happens on correctly labeled models of the foreign exchange market for US dollars (USD) and Canadian dollars (CAD). Copyright Jacob Clifford 2020. yww,ACDCecon.com Annual license required. Do not use unless you have purchased a license 1. US policymakers implement expansionary fiscal policy resulting inreal ~ * 1 point output increasing faster in the US than in Canada. Identify what happens to the value of each currency. &, Add file 2. The US central bank sells treasuries, increasing the U.S. real interest rate * 1 point relative to Canada''s. Identify what happens to the value of each currency. &, Add file 3. The U.S. puts tariffs on Canadian imports. Identify what happens to the ~ * 1 point value of each currency. &, Add file @ docs.google.com Part 2 - Putting It All Together Part 2 Putting It All Together- Draw the foreign exchange market for US dollars and label the international value of the US dollar ER,. Copyright Jacob Clifford 2020. www.ACDCecon.com Annual license required. Do not use unless you have purchased a license 4. Assume that mismanagement in the US results in significantly higher * 1 point inflation. Show what will happen on the graph and identify what will happen to the international value of the dollar. & Add file 5. Explain why higher inflation causes a shift in both the demand for dollars * 1 point and the supply of dollars. Your answer 6. Assume instead that the US experienced less inflation than its trading partners. Explain what would happen to the demand and the supply for US dollars. Your answer Part 3 - Practice @ docs.google.com Part 3 - Practice Part 3 Practice- For each of the following, identify the correct response. 7. Anincrease in incomes in the U.S. would tend to cause the dollar price of * 1 point the Japanese yen to (rise, fall). Your answer 8. When the dollar price of the Indian rupee increases, there has been a(n) * 1 point (appreciation, depreciation) in the value of the U.S. dollar. Your answer 9. When the dollar depreciates relative to the euro, European goods will * 1 point tend to become (more expensive, less expensive) for Americans. Your answer 10. If interest rates in the U.S. rise, demand for the dollar will (rise, fall), * 1 point resulting in a(n) (appreciation, depreciation) of the U.S. dollar. Your answer @ docs.google.com 11. Inflation in Venezuela results in the (appreciation, depreciation) of their * 1 point currency, the bolivar. Your answer 12. Devaluation of a currency results in an official (rise, decrease) in its * 1 point value relative to other currencies. Your answer 13. If the equilibrium exchange rate changes so that the dollar price of the * 1 point Mexican peso increases, the dollar has (appreciated, depreciated) in value. Your answer 14. A decrease in the U.S. demand for Chinese goods will (increase, * 1 point decrease) the demand for Chinese yuan and (increase, decrease) the dollar price of the yuan. Your answer 15. If the exchange rate for one U.S. dollar changes from 1 to 1.3 , there * 1 point has been a(n) (appreciation, depreciation) in the value of the euro. Your answer @ docs.google.com Your answer 15. If the exchange rate for one U.S. dollar changes from 1 to 1.3 , there * 1 point has been a(n) (appreciation, depreciation) in the value of the euro. Your answer 16. If the exchange rate for one British pound changes from $1.40 to $1.50, * 1 point there has been a(n) (appreciation, depreciation) in the value of the British pound. Your answer 17. If Germans acquire a taste for Colombian coffee the (supply of, demand * 1 point for) euros will increase, causing a(n) (appreciation, depreciation) of the euro. Your answer Never submit passwords through Google Forms. This form was created inside of Loudoun County Public Schools. Report Abuse Google Forms (O 1 @ docs.google.com (O ST Macro Topic 6.5 Foreign Exchange and Net Exports Part 1 Check Your Understanding- Assume that the only two currencies in the world are the U.S. dollar and the euro and that the US dollar has recently appreciated. Copyright Jacob Ciifford 2020, red. Do not use unless you have Annual license re 1. What will happen to US net exports? Explain. * 1 point Your answer 2. Identify who likely benefits from a stronger dollar. * 1 point Your answer 3. Identify who is likely harmed by a stronger dollar. * 1 point Your answer Part 2 Practice Part 2 Practice- Answer the following questions. unit O] B oeit & + @ [0S