Trade Deficits andJ-Curve Adjustment Paths. Assume the United States has the followingimport/export

volumes and prices. It undertakes a major"devaluation" of thedollar, say 20% on average against all major trading

partner currencies. What is thepre-devaluation andpost-devaluation tradebalance?

initial spot exchange rate, $/fc 2.09

Price of exports, dollars ($) 18.3900

Price of imports, foreign currency (fc) 12.2000

Quantity of exports, units 110

Quantity of imports, units 130

Percentage devaluation of the dollar 19.00

What is thepre-devaluation tradebalance

The revenues from exports are ? (Round to the nearestcent.)

The expenditures on imports in foreign currency are fc? (Round to two decimalplaces.)

The expenditures on imports in U.S. dollars are ? (Round to the nearestcent.)

Pre-devaluation trade balance

Revenues from exports, U.S. dollars?

Expenditures on imports, foreign currencyfc?

Expenditures on imports, U.S. dollars?

Pre-devaluation trade balance?

The new spot exchange rate after devaluation is $/fc? (Round to four decimalplaces.)

The new expenditures on imports in U.S. dollars are ? (Round to the nearestcent.)

Post-devaluation trade balance

Revenues from exports, U.S. dollars?

Expenditures on imports, foreign currencyfc?

Expenditures on imports, U.S. dollars?

Post-devaluation trade balance?