This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What can you learn from the figure below (Figure 13-1 from the text) which depicts the U.S. GNP and ... (Read 218 times)

luminitza

  • Hero Member
  • *****
  • Posts: 555
on: Jun 30, 2018
What can you learn from the figure below (Figure 13-1 from the text) which depicts the U.S. GNP and its components for the year 2009?
 
  What will be an ideal response?

Question 2

Discuss the effects of a rise in the dollar interest rate on the exchange rate.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

tkempin

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 30, 2018
Answer to Question 1

The highest component of GNP is consumption and the U.S. has a negative current balance.

Answer to Question 2

There are two effects to consider. A rise in the interest rate offered by dollar deposits combined with a constant expected exchange rate will cause the dollar to appreciate (see Figure 14-5 from the text). However, the expected exchange rate will likely change. As Figure 14-6 from the text shows, if the expected exchange rate increases, the dollar will depreciate.

Figure 14-5

Figure 14-6


luminitza

  • Member
  • Posts: 555
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

hollysheppard095

  • Member
  • Posts: 339
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

Cyanide works by making the human body unable to use oxygen.

The Z scheme, which depicts the energy of an electron as it moves from photosystem II to NADP+ The Z scheme, which depicts the energy of an electron as it moves from photosystem II to NADP+
As immigrants assimilate into a new culture, they learn and adapt new customs. This photo was taken ... As immigrants assimilate into a new culture, they learn and adapt new customs. This photo was taken ...
Some ignition coils are electrically connected, called married (top figure), whereas others use ... Some ignition coils are electrically connected, called married (top figure), whereas others use ...
Mobilize joints of the feet and ankle. Apply scissoring to metatarsals and figure-8s to toes. Dorsi- ... Mobilize joints of the feet and ankle. Apply scissoring to metatarsals and figure-8s to toes. Dorsi- ...
Figure and Ground Figure and Ground
Grade 1 learn Canadian money Grade 1 learn Canadian money
Video: Role of complement proteins

For a complete list of videos, visit our video library