in wealth and _____ in government spending, along with a(n) of the dollar, will shift the U.S. aggregate demand curve to the left. Decreases; increases; appreciation Increases; decreases; appreciation Decreases; decreases; appreciation Decreases; decreases;
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- Supply Demand Supply Demand QUANTITY (dolars) These fears would cause the demand for dollars to , and the sup ply of dollars to leading to In the euro/dollar exchange rate. PRICE OF DOLLARS (euros per dollar)1- Based on the table, identify and explain the components of Aggregated Demand. Showthe variation in the Components of AD over four years which contributes the maximum tothe AD 2- From the table, relate Fiscal balance and Current account balance. Analyze why bothshow negative trend. 3- What is the trend in the fluctuation of OMR exchange rate against Dollar? What ismethod used for fixing exchange rate against $ and how is related to the trend shown in thetable 4- From the table we see that Trade balance is growing steadily but the Fiscal balanceshows negative trend. Are these related variables or independent variables. What does itindicate about the AD and AS of Oman’s economy? 5- Calculate the NON-WORKING POPULATION of Male and NON-WORKINGPOPULATION of Female of the country based on the population structure given above inthe chart. Consider the minimum working age is 20, explain working and non-workingpopulation and show calculation to demonstrate how you have reached the conclusion.…Tools Consider two similar restaurants In dose proximity to each other on elther side of the U.S.-Mexico border. Suppose the dollar depreciates agalnst the peso. The following graph shows the supply and demand curves for meals at the restaurant on the Mexican side of the border. On the following graph, shtft erther the supply curve or the demand curve to represent the effect of the devaluation of the dollar agalnst the peso on the market for meals at the restaurant on the Mexican side of the border. (? O D D. QUANTITY (MEALS) The dollar devaluation harms PRICE (Pesos)
- The Foreign Exchange MarketThe Jamaican dollar experienced a rapid depreciation in the exchange rate during 2020 due to thepandemic's impact on key sectors. The exchange rate in 2020 closed at J$142.65 to US$1.00,after opening the year at J$132.57, resulting in a 7.6 per cent depreciation. As at FridaySeptember 16, 2022, the exchange rate was at approximately $ JA 150 to US $1 Arguments for and against fixed exchange rate.The Foreign Exchange MarketThe Jamaican dollar experienced a rapid depreciation in the exchange rate during 2020 due to thepandemic's impact on key sectors. The exchange rate in 2020 closed at J$142.65 to US$1.00,after opening the year at J$132.57, resulting in a 7.6 per cent depreciation. As at FridaySeptember 16, 2022, the exchange rate was at approximately $ JA 150 to US $1.QUESTIONGiven this rapid depreciation of the Jamaican dollar against the US dollar,should the government of Jamaica adopt a Fixed Exchange Rate regime ormaintain the current Floating Rate regime?Outline to answering the question Clear distinction between fixed exchange rate and floating exchange rate, Examples of countries that uses fixed exchange rate regime and those that uses floatingexchange rate regime and Arguments for and against floating exchange rateSuppose there is a reduction in foreign output, Y*. This reduction in Y* will cause which of the following in the domestic country?a reduction in outputa reduction in consumptiona reduction in net exportsall of the abovenone of the above
- A loyal Apple customer, has set out a table of Apple’s net sales also adding his/her expectations about 2021 developments. (1) Knowing that US dollar is strengthening against foreign currencies, do you agree with the 2021 net sales figures of iPad and Services? (2) Assuming that net sales of iPhones not being largely affected by the exchange rate developments but by new versions of iPhones, would you expect percentage share of net sales of iPhones to increase or decrease with stronger US. dollar against foreign currencies in 2021 (but without launching new iPhone models)? (3) Do you agree with your friend’s claim that long-term net sales changes cause translation exposure to Apple?In an open economy, a permanent beneficial suply shock (s< 0)implie tha the domestic real exchange rate wil: Oappreciate as the est of the word buys the domestic curency Oremain unchanged because of fsetig movements n he domestic prie level Oremain unchanged because of ffseting movements in realinteret rates Odepreciate so as to crowd-in net exportsWhat is happening to the U.S. real exchange rate ineach of the following situations? Explain.a. The U.S. nominal exchange rate is unchanged,but prices rise faster in the United States thanabroad.b. The U.S. nominal exchange rate is unchanged, butprices rise faster abroad than in the United States.c. The U.S. nominal exchange rate declines, andprices are unchanged in the United States andabroad.d. The U.S. nominal exchange rate declines, andprices rise faster abroad than in the United States.
- Suppose the real exchange rate is 10, the domestic price level is 8, and the foreign price level is 4. (i) What is the nominal exchange rate?e - enor-P Use the expression: rea! - PrOT ,where ereal is real exchange rate, enor is nominal exchange rate, P is domestic price level and Pro, is foreign price level (ii) Suppose the real exchange rate rises by 10%, the inflation rate in the domestic country is 6%, and the inflation rate in the foreign country is 4%. By what percentage does the nominal exchange rate change?Question 15 What is the likely result from a depreciation of a nation's currency when its economy is already operating at its full-employment level of outpul? CA, Net exports would fall and contribute to demand-pull inflation. OB. Net exports would fall, but equilibrium GDP would rise. OC. Net exports would rise and contribute to demand-pull inflation. CD Net exports would rise, but equilibrium GDP would fall.If a countrys currency is expected to appreciate in value, what would you think will be the impact of expected exchange rates on yields (e.g., the Interest rate paid on government bonds) in that country? Hint: Think about how expected exchange rate changes and interest rates affect a currencys demand and supply.