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Suppose the U.S. and China are the onlytwo trading countries in the world. Will the U.S. dollarAppreciate or Depreciate basedon the following events, other things
Suppose the U.S. and China are the onlytwo trading countries in the world. Will the U.S. dollar"Appreciate" or "Depreciate" basedon the following events, other things equal?
(You must respond by stating the dollar willeither "Appreciate" or "Depreciate").
1. China relaxes some of its import restrictions on American goods.
2. Interest rates in the U.S. rise relative to interest rates offered in China.
3. Chinese consumers decide to purchase fewer American cars but instead buy their own domestically produced cars.
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