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What are Sincmidends erable thalaness during the ere devaluation period, the postdevalantion - imitudately after devalantion periot, and the bont-devakuation eumeity adjogtmieith period, respectively? (Pliexat
What are Sincmidends erable thalaness during the ere devaluation period, the postdevalantion - imitudately after devalantion periot, and the bont-devakuation eumeity adjogtmieith period, respectively? (Pliexat mote that fe o foreign currency) Pike ef exports, doilises =525,00 per unit Peloe of limparts, fe - fe. 15.00 per und Quantity of exports, units =100 units Quantity of imports, units =120 Percentage devaluation of the dollar =25%5 Price elasticity of demand for imports =0.80 a) What is the pre-devaluation trade balance? b) What is the trade balance immediately after devaluation? (the new exchange rate) c) What is the trade balance during the post-devaluation - quantity adjustment period? (new imports) Bonus Part d) In addition to changes in imports in c), exports may also change: Snowland's exports have a price elasticity of demind is 0.9, what is the trade balance during the post-devaluation - quantity adjustment period (using the the same imports from Part c) but calculate new exports)? What are Sincmidends erable thalaness during the ere devaluation period, the postdevalantion - imitudately after devalantion periot, and the bont-devakuation eumeity adjogtmieith period, respectively? (Pliexat mote that fe o foreign currency) Pike ef exports, doilises =525,00 per unit Peloe of limparts, fe - fe. 15.00 per und Quantity of exports, units =100 units Quantity of imports, units =120 Percentage devaluation of the dollar =25%5 Price elasticity of demand for imports =0.80 a) What is the pre-devaluation trade balance? b) What is the trade balance immediately after devaluation? (the new exchange rate) c) What is the trade balance during the post-devaluation - quantity adjustment period? (new imports) Bonus Part d) In addition to changes in imports in c), exports may also change: Snowland's exports have a price elasticity of demind is 0.9, what is the trade balance during the post-devaluation - quantity adjustment period (using the the same imports from Part c) but calculate new exports)
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