Calculate the new supply of dollars at each exchange rate

Assignment Help Business Economics
Reference no: EM13159756

1. Suppose that ex is the exchange rate between the U.S. dollar and the Chinese yuan in that ex indicates the number of yuan that can be purchased with one dollar. The demand for dollars, denoted, D$, is given by the equation D$ = 2,800 - 200ex. The supply of dollars, denoted, S$, is given by the equation S$ = 400 + 100ex.

(a) Calculate the demand for dollars and supply of dollars at exchange rates between 0 and 12 in increments of one.

(b) Graph the demand for dollars and supply of dollars against the exchange rate. What is the value of the equilibrium exchange rate?

(c) Suppose the demand for dollars increases by 300 billion at each exchange rate. Explain if the increase in demand results from a large purchase by the Chinese of a new American-made airplane or a large purchase by Americans of new lower priced Chinese-made high definition televisions. Calculate the new demand for dollars at each exchange rate and graph the new demand curve. What is the new equilibrium exchange rate, given the original supply of dollars?

(d) Suppose the supply for dollars increases by 600 billion at each exchange rate. Explain if the increase in supply results from a large purchase by the Chinese of a new American-made airplane or a large purchase by Americans of new lower priced Chinese-made high definition televisions. Calculate the new supply of dollars at each exchange rate and graph the new supply curve. What is the new equilibrium exchange rate, given the original demand for dollars?

Reference no: EM13159756

Questions Cloud

Not-for-profit organizations problem : The primary revenue source for not-for-profit organizations is contributions. Please define what a contribution is, and discuss how the different types of contributions are recognized as revenue (i.e. cash contributions, unconditional promise to g..
What is the pressure of the other tank : You have two gas tanks, one is 7.00 L and the other is 3.50L, and one of the tanks has oxygen in it and the other has acetylene. If the tank wth the oxygen has a pressure of 145 atm, what is the pressure of the other tank?
What are some more common restrictions on the activities : What are some more common restrictions on the activities of multinational corporations in host countries? Your 200 word answer should focus on selecting and organizing your most relevant comments in a coherent fashion.
State what is the heat capacity of the copper in j/k : assuming no heat loss, and that the specific heat (capacity) of water is 4.184 J/g*K, what is the heat capacity of the copper in J/K?
Calculate the new supply of dollars at each exchange rate : Calculate the new supply of dollars at each exchange rate and graph the new supply curve. What is the new equilibrium exchange rate, given the original demand for dollars?
Decide how to plan to structure audit report for evidence : Evaluate the evidence provided by the Apollo Shoes Case Study. Compose an audit report, which reflects the appropriate length, sections, and content for the provided information.
Types of gaap accounting methods : Fund accounting is very different from commercial accounting, but has a lot of similarities as well. Discuss the similarities and differences between these two types of GAAP accounting methods.
4-way set associative cache unit with a 6-bit offset : Given a 4-way set associative cache unit with a 6-bit offset and a 12-bit index for a 32-bit address space with a LRU write-back policy, determine the nominal and actual size of the cache unit.
The args designate the range : The args designate the range [lo, hi]. If lo > hi, then that designates the empty range (no numbers), in which case outputA returns without outputting any numbers. Otherwise, outputA outputs all the numbers in the range that are interesting.

Reviews

Write a Review

Business Economics Questions & Answers

  One firm in an industry significantly

Under oligopoly if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry.

  Who should specialize in gathering nuts

Suppose that in an hour Chip can gather 8 pounds of fruit or 4 pounds of nuts. In an hour, Monk can gather 9 pounds of fruit or 3 pounds of nuts. Who should specialize in gathering nuts? Monk or Chip? both? or neither?

  Determine profit maximizing quantity of upholstery

You are manager of Bonnie=s Unknown Lexicon Lists, Silly Hat Incorporation Tapestry Company. A company dedicated to making tapestry and upholstery fabric. Determine profit maximizing quantity of upholstery.

  Nebraska and virginia each have 100 acres

Suppose the two states decide that they want to produce 590 units of wheat together (not 590 units of wheat each). What is the maximum amount of cotton that they could produce?

  What whole sale price will mirk labs set

A decade ago Mirk Labs incurred $60 million in research and development coss for Zatab. Current production costs for Zatab are constant and equal to %5 per unit what whole sale price will Mirk Labs set.

  How is an investor''s choice of which security to purchase

How is an investor's choice of which security to purchase related to his degree of risk aversion?

  Follow a no-haggling policy

Can you offer another reason why the New Jersey dealer might not have wished to follow a no-haggling policy.

  Elucidate why raising cattle is land intensive compared

Elucidate why we still say that raising cattle is land intensive compared with farming wheat or why not.

  What is the equilibrium price of honey

Suppose the demand for honey is given by Q=500-4p. Also, suppose there are 80 honey producers in the market. What is the equilibrium price of honey?

  Discuss how the distribution of income among various groups

Discuss how the distribution of income among various groups of income earners have changed in this country during the past 50 years. In your opinion, do we need to initiate any policy to address the distribution of income?

  Write the likelihood functions of logit model

The best way to organize your results is in the form of a table. Report the log-likelihood and pseudo R2 for the nonlinear models and the R2 and adjusted R2 for the linear model. Write the likelihood functions of logit model

  How much of a yearly increase in the cost of the program

If the company expects to spend $50,000 in the first year of this improvement program, how much of a yearly increase in the cost of the program is the company expecting?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd