Economics

Question about elasticity

Question about elasticity

This is for a friend.. Could someone please help with the attached question 7 on economical elasticity..
 she tried finding the solution manual for the book but it wasnt available

ehd123   949   N/A

ehd123

Compare the effect on the price level and real GDP of a decrease in tax rates assuming a supply-side

Compare the effect on the price level and real GDP of a decrease in tax rates assuming a supply-side

Compare the effect on the price level and real GDP of a decrease in tax rates assuming a supply-side effect versus no supply-side effect. Compared to no supply-side effect, including a supply-side effect for the decrease in tax rates will cause the p

Tidy   920   1 Reply

iMMORTAL153

If American demand for purchases of Mexican goods has increased, how would you expect the equilibriu

If American demand for purchases of Mexican goods has increased, how would you expect the equilibriu

If American demand for purchases of Mexican goods has increased, how would you expect the equilibrium exchange rate in the market for dollars to respond? Support your answer graphically.

Tidy   279   1 Reply

Sydnie

Explain and show graphically how an increase in incomes in the United States will affect equilibrium

Explain and show graphically how an increase in incomes in the United States will affect equilibrium

Explain and show graphically how an increase in incomes in the United States will affect equilibrium in the foreign exchange market?

Tidy   362   1 Reply

Sydnie

If American demand for purchases of British goods has decreased, how would you expect the equilibriu

If American demand for purchases of British goods has decreased, how would you expect the equilibriu

If American demand for purchases of British goods has decreased, how would you expect the equilibrium exchange rate in the market for dollars to respond? Support your answer graphically.

Tidy   256   1 Reply

Sydnie

What are the three main sets of factors that cause the supply and demand curves in the foreign excha

What are the three main sets of factors that cause the supply and demand curves in the foreign excha

What are the three main sets of factors that cause the supply and demand curves in the foreign exchange market to shift?

Tidy   1215   1 Reply

Sydnie

Ceteris paribus, a real depreciation of the dollar will decrease net exports in the United States.[i

Ceteris paribus, a real depreciation of the dollar will decrease net exports in the United States.[i

Ceteris paribus, a real depreciation of the dollar will decrease net exports in the United States.
True or false?

Tidy   259   1 Reply

Sydnie

A real appreciation of the dollar is caused by either a nominal appreciation of the dollar, a rise i

A real appreciation of the dollar is caused by either a nominal appreciation of the dollar, a rise i

A real appreciation of the dollar is caused by either a nominal appreciation of the dollar, a rise in the foreign price level, or a fall in the U.S. price level.
True or false?

Tidy   286   1 Reply

Sydnie

Holding all else constant, an economic expansion in Mexico should decrease the demand for U.S. dolla

Holding all else constant, an economic expansion in Mexico should decrease the demand for U.S. dolla

Holding all else constant, an economic expansion in Mexico should decrease the demand for U.S. dollars.
True or false?

Tidy   291   1 Reply

Sydnie

Holding all else constant, a rise in interest rates in the United States will cause the dollar to ap

Holding all else constant, a rise in interest rates in the United States will cause the dollar to ap

Holding all else constant, a rise in interest rates in the United States will cause the dollar to appreciate in international exchange markets.
True or false?

Tidy   370   1 Reply

Sydnie

If the dollar appreciates, how will aggregate demand in the United States be affected?

If the dollar appreciates, how will aggregate demand in the United States be affected?

If the dollar appreciates, how will aggregate demand in the United States be affected?
A) Aggregate demand will increase as exports increase and imports decrease.
B) Aggregate demand will increase as imports increase and exports decrease.

Tidy   958   1 Reply

Sydnie

An increase in capital inflows will

An increase in capital inflows will

An increase in capital inflows will
A) increase net foreign investment.
B) increase capital outflows.
C) decrease capital outflows.
D) increase the value of the domestic currency.

Tidy   259   1 Reply

Sydnie

If the dollar depreciates against the Indian rupee

If the dollar depreciates against the Indian rupee

If the dollar depreciates against the Indian rupee
A) Indian imports to the U.S. become less expensive.
B) U.S. exports to India become less expensive.
C) U.S. exports to India become more expensive.
D) The value of Indian imports

Tidy   212   1 Reply

Sydnie

If the exchange rate changes from $0.08 = 1 mexican peso to $0.09 = 1 mexican peso, then

If the exchange rate changes from $0.08 = 1 mexican peso to $0.09 = 1 mexican peso, then

If the exchange rate changes from $0.08 = 1 mexican peso to $0.09 = 1 mexican peso, then
A) both the peso and dollar have appreciated.
B) both the peso and dollar have depreciated.
C) the peso has appreciated and the dollar has depreci

Tidy   357   1 Reply

Sydnie

If the exchange rate changes from $2.00 = 1 euro to $1.98 = 1 euro then

If the exchange rate changes from $2.00 = 1 euro to $1.98 = 1 euro then

If the exchange rate changes from $2.00 = 1 euro to $1.98 = 1 euro then
A) the dollar has depreciated.
B) the dollar has appreciated.
C) the euro has appreciated.
D) the euro has stayed constant in value.

Tidy   799   1 Reply

Sydnie

When exchange rates are ________, we say that the country's exchange rate is fixed.

When exchange rates are ________, we say that the country's exchange rate is fixed.

When exchange rates are ________, we say that the country's exchange rate is fixed.
A) determined in the market
B) set by a country's central bank
C) determined by supply and demand
D) relatively stable

Tidy   277   1 Reply

Sydnie

If a country has a ________ exchange rate, its central bank must buy and sell its holdings of curren

If a country has a ________ exchange rate, its central bank must buy and sell its holdings of curren

If a country has a ________ exchange rate, its central bank must buy and sell its holdings of currencies to maintain a given exchange rate.
A) floating
B) flexible
C) fixed
D) all of the above

Tidy   284   1 Reply

Sydnie

When Americans decrease their demand for Japanese goods

When Americans decrease their demand for Japanese goods

When Americans decrease their demand for Japanese goods
A) the demand for dollars will rise, and the demand for yen will rise.
B) the demand for dollars will fall, and the demand for yen will rise.
C) the supply of dollars will rise, a

Tidy   556   1 Reply

Sydnie

Which of the following will shift the demand for the euro to the right?

Which of the following will shift the demand for the euro to the right?

Which of the following will shift the demand for the euro to the right?
A) an increase in interest rates in the European Union
B) an increase in incomes in countries that buy goods from the European Union
C) expectations among speculat

Tidy   588   1 Reply

Sydnie

How will an interest rate increase in the United States affect equilibrium in the market for dollars

How will an interest rate increase in the United States affect equilibrium in the market for dollars

How will an interest rate increase in the United States affect equilibrium in the market for dollars against foreign currencies? (Assume the exchange rate is stated in terms of foreign currency per U.S. dollar.)
A) The equilibrium exchange rate

Tidy   182   1 Reply

Sydnie

A decrease in the demand for American-made goods will

A decrease in the demand for American-made goods will

A decrease in the demand for American-made goods will
A) increase the supply of dollars in the foreign exchange market.
B) decrease the supply of dollars in the foreign exchange market.
C) increase the demand for dollars in the foreign

Tidy   229   1 Reply

Sydnie

Refer to the Article Summary. All else equal, a depreciation of the Indian rupee relative to a curre

Refer to the Article Summary. All else equal, a depreciation of the Indian rupee relative to a curre

Refer to the Article Summary. All else equal, a depreciation of the Indian rupee relative to a currency such as the U.S. dollar should ________ the current account balance in India and therefore ________ the financial account balance in India.
A

Tidy   485   1 Reply

Sydnie

Refer to the Article Summary. All else equal, a depreciation of the Indian rupee relative to a curre

Refer to the Article Summary. All else equal, a depreciation of the Indian rupee relative to a curre

Refer to the Article Summary. All else equal, a depreciation of the Indian rupee relative to a currency such as the U.S. dollar should ________ Indian exports and ________ imports to India.
A) increase; increase
B) increase; decrease
C

Tidy   308   1 Reply

Sydnie

If the demand for the yen increases relative to the dollar, which of the following would occur?

If the demand for the yen increases relative to the dollar, which of the following would occur?

If the demand for the yen increases relative to the dollar, which of the following would occur?
A) The dollar will appreciate.
B) The yen will depreciate.
C) The dollar will depreciate.
D) The demand for the dollar will increase.

Tidy   182   1 Reply

Sydnie

Currency traders expect the dollar to depreciate. What impact will this have on equilibrium in the f

Currency traders expect the dollar to depreciate. What impact will this have on equilibrium in the f

Currency traders expect the dollar to depreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will decrease.
B) The dollar will depreciate,

Tidy   306   1 Reply

Sydnie

Currency traders expect the value of the dollar to rise. What effect will this have on the demand fo

Currency traders expect the value of the dollar to rise. What effect will this have on the demand fo

Currency traders expect the value of the dollar to rise. What effect will this have on the demand for dollars and the supply of dollars in the foreign exchange market?
A) Demand for dollars will increase, and supply of dollars will decrease.

Tidy   400   1 Reply

Sydnie

You're traveling in Japan and are thinking about buying a new kimono. You've decided you'd be willin

You're traveling in Japan and are thinking about buying a new kimono. You've decided you'd be willin

You're traveling in Japan and are thinking about buying a new kimono. You've decided you'd be willing to pay $175 for a new kimono, but kimonos in Japan are all priced in yen. If the kimono you're looking at costs 14,000 yen, unde

Tidy   277   1 Reply

Sydnie

You're traveling in Japan and are thinking about buying a new kimono. You've decided you'd be willin

You're traveling in Japan and are thinking about buying a new kimono. You've decided you'd be willin

You're traveling in Japan and are thinking about buying a new kimono. You've decided you'd be willing to pay $175 for a new kimono, but kimonos in Japan are all priced in yen. If the exchange rate is 89 yen per dollar, what is the high

Tidy   308   1 Reply

Sydnie

If the nominal exchange rate between the American dollar and the New Zealand dollar is 1.36 New Zeal

If the nominal exchange rate between the American dollar and the New Zealand dollar is 1.36 New Zeal

If the nominal exchange rate between the American dollar and the New Zealand dollar is 1.36 New Zealand dollars per American dollar, how many American dollars are required to buy a product that costs 3.50 New Zealand dollars?
A) $2.14
B) $2

Tidy   540   1 Reply

Sydnie

Ceteris paribus, a rise in interest rates in the United States will cause the yen price of the dolla

Ceteris paribus, a rise in interest rates in the United States will cause the yen price of the dolla

Ceteris paribus, a rise in interest rates in the United States will cause the yen price of the dollar in international exchange markets to ________. I.e., the dollar ________ in value against the yen.
A) increase; appreciates
B) increase; d

Tidy   214   1 Reply

Sydnie

How will contractionary monetary policy in Japan affect the demand and supply of the yen in the fore

How will contractionary monetary policy in Japan affect the demand and supply of the yen in the fore

How will contractionary monetary policy in Japan affect the demand and supply of the yen in the foreign exchange market?
A) The demand for the yen will fall, and the supply of the yen will increase.
B) The demand for the yen will increase,

Tidy   238   1 Reply

Sydnie

How will an interest rate decrease in the United States affect equilibrium in the foreign exchange m

How will an interest rate decrease in the United States affect equilibrium in the foreign exchange m

How will an interest rate decrease in the United States affect equilibrium in the foreign exchange market?
A) The equilibrium exchange rate will increase, and the equilibrium quantity of dollars traded cannot be determined.
B) The equilibri

Tidy   159   1 Reply

Sydnie

An expansionary monetary policy in the United States should

An expansionary monetary policy in the United States should

An expansionary monetary policy in the United States should
A) decrease the foreign currency price of U.S. exports.
B) cause the dollar to appreciate.
C) decrease the dollar price of imports.
D) decrease net exports.

Tidy   180   1 Reply

Sydnie

An increase in capital inflows will

An increase in capital inflows will

An increase in capital inflows will
A) increase net foreign investment.
B) increase capital outflows.
C) decrease capital outflows.
D) increase the equilibrium exchange rate.

Tidy   234   1 Reply

Sydnie

If the exchange rate changes from $1.45 = 1 euro to $1.37 = 1 euro, then

If the exchange rate changes from $1.45 = 1 euro to $1.37 = 1 euro, then

If the exchange rate changes from $1.45 = 1 euro to $1.37 = 1 euro, then
A) both the euro and dollar have appreciated.
B) both the euro and dollar have depreciated.
C) the euro has appreciated and the dollar has depreciated.
D) th

Tidy   810   1 Reply

Sydnie

An increase in the demand for American-made goods will

An increase in the demand for American-made goods will

An increase in the demand for American-made goods will
A) increase the supply of dollars on the foreign exchange market.
B) decrease the supply of dollars on the foreign exchange market.
C) increase the demand for dollars on the foreig

Tidy   392   1 Reply

Sydnie

Which of the following would cause the dollar to appreciate?

Which of the following would cause the dollar to appreciate?

Which of the following would cause the dollar to appreciate?
A) an increase in the demand for dollars
B) a decrease in the demand for dollars
C) an increase in the supply of dollars
D) an increase in the demand for imports from f

Tidy   194   1 Reply

Sydnie

Currency traders expect the dollar to appreciate. What impact will this have on equilibrium in the f

Currency traders expect the dollar to appreciate. What impact will this have on equilibrium in the f

Currency traders expect the dollar to appreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will decrease.
B) The dollar will depreciate,

Tidy   222   1 Reply

Sydnie

If there is currently a surplus of dollars, which of the following would you expect to see in the fo

If there is currently a surplus of dollars, which of the following would you expect to see in the fo

If there is currently a surplus of dollars, which of the following would you expect to see in the foreign exchange market?
A) The dollar will appreciate.
B) The dollar will depreciate.
C) There will be a decrease in the demand for doll

Tidy   843   1 Reply

Sydnie

If the dollar appreciates against the Mexican peso

If the dollar appreciates against the Mexican peso

If the dollar appreciates against the Mexican peso
A) Mexican imports to the U.S. become more expensive.
B) U.S. exports to Mexico become less expensive.
C) U.S. exports to Mexico become more expensive.
D) The value of Mexican imp

Tidy   219   1 Reply

Sydnie