Answered: this mean for the dollar? For the…

this mean for the dollar? For the pound? What if the exchange rate changes from $1.80 £1 to $1.84 £1? b) How willa depreciation of the dollar affect the US net export?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Open-economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 5QR

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Question

(a) If the exchange rate changes from $1.75 = £1 to $1.72 to £1; What does
this mean for the dollar? For the pound? What if the exchange rate changes
from $1.80 £1 to $1.84 £1?
(b) How will a depreciation of the dollar affect the US net export?

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