For questions 14-20, let the USA trade goods and services with one country-- INDIA -- there are no investment flows nor Central bank interventions. The USA exports Caterpillar Tractors to India that have a price $1 million each. The Indian's are a small enough part of the market that this does not change as function of the number of tractors they buy. The Indians export hammers to the USA and a price of 45 rupees and this does not change as a function of the number of hammers the US buys. Here is the relevant data-- note: you will need to figure out some numbers in th table-- and yes you have all the information you need D ($) Indian Indian price Demand for of CAT in CAT rupee S ($) 5 5 Q India US Price of Hammer X-RATE Indian demanded in Hammer in $ USA $1= 90 500 rupee million $1= 60 200 rupee million $1= 45 100 rupee million $1 = 30 50 rupee million $1= 15 10 rupee million 10 15 20 30 SU rupee 14. Under these conditions what is the equilibrium exchange rate $1-30 rupee $1-60 rupee $1-40 rupee $1-90 rupee $1-15 rupee 15 Under these conditions, what is the dollar value of the CAT exports to India 20 150 m 5515.10 10 30 $115 rupee 16. Under these conditions what is dollar value of US imports of Indiana halmers $15 10.375 OF $100 $50 510 Question 17 For questions 14-20, let the USA trade goods and services with one country-- INDIA -- there are no investment flows nor Central bank interventions. The USA exports Caterpillar Tractors to India that have a price $1 million each. The Indian's are a small enough part of the market that this does not change as function of the number of tractors they buy. The Indians export hammers to the USA and a price of 45 rupees and this does not change as a function of the number of hammers the US buys. Here is the relevant data-- note: you will need to figure out some numbers in th table-- and yes you have all the information you need D ($) Indian Indian price Demand for of CAT in CAT rupee S ($) 5 5 Q India US Price of Hammer X-RATE Indian demanded in Hammer in $ USA $1= 90 500 rupee million $1= 60 200 rupee million $1= 45 100 rupee million $1 = 30 50 rupee million $1= 15 10 rupee million 10 15 20 30 SU rupee 14. Under these conditions what is the equilibrium exchange rate $1-30 rupee $1-60 rupee $1-40 rupee $1-90 rupee $1-15 rupee 15 Under these conditions, what is the dollar value of the CAT exports to India 20 150 m 5515.10 10 30 $115 rupee 16. Under these conditions what is dollar value of US imports of Indiana halmers $15 10.375 OF $100 $50 510 Question 17
