Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter P5, Problem 1KC
To determine
The cause for the rightward shift in Country U’s
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Question 3 (Supply and Demand)
Evaluate the effect of the following on the Canada-US exchange rate:
a) A tariff is placed on the import of Canadian goods into the US.
b) The U.S. stock market is expected to significantly increase in value.
c) The saving rate in Canada (% of income saved) significantly increases.
d) The US significantly increases taxes on capital investment.
e) A decrease in the price of flights to Florida in February.
Question 10
Which statement is supported by the information in the table?
Export and Import Table
Canada
United States
Top Export Partners
n
Export Partner
D
United States
United Kingdom
Canada
Mexico
China
Japan
Percent of Exports
73.70%
4.20%
19.00%
13.30%
7.00%
4.50%
Top Import Partners
Import Partner
United States
China
Mexico
China
Canada
Mexico
Japan
Germany
B The United States exports more goods to China than to Canada.
Percent of Imports
49.50%
Trade with China disrupts trade between the United States and Canada.
10.80%
A Canada and the United States are each the chief exporting nation to the other.
5.50%
18.40%
14.20%
11.70%
5.80%
4.40%
Canada imports more goods from the United States than it exports to the United States.
News Analysis: Exchange rates hold the key to trade between Japan and the United States (NEW)
3. Exchange rates and U.S. exports: A graphical relationship
The following graph shows exports from the United States to Japan. (Note: U.S. exports are measured in yen on this graph, which will enable you to
see U.S. exports on the same graph as Japanese exports in a later problem.)
EXCHANGE RATE (Dollars per yen)
Exports from the U.S.
Exports from the U.S.
?
(
·
X
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