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Author Question: The U.S. and Japan have significant trade with each other. Which of the following is true? (Read 15 times)

Diane

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Question 1

If exchange rates are fixed, then an increase in Canada's export prices causes


◦ U.S. import prices to fall.
◦ U.S. import prices to rise.
◦ Canadian import prices to fall.
◦ Canadian import prices to rise.

Question 2

The U.S. and Japan have significant trade with each other. Which of the following is 
true?


◦ U.S. prices increase ⇒ U.S. exports increase ⇒ Japanese prices decrease.
◦ U.S. prices increase ⇒ U.S. imports increase ⇒ Japanese prices increase.
◦ U.S. prices decrease ⇒ U.S. imports increase ⇒ Japanese prices increase.
◦ U.S. prices decrease ⇒ U.S. exports decrease ⇒ Japanese prices increase.


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Marked as best answer by Diane on Apr 19, 2019

miss.ashley

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miss.ashley

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