Effects on exchange rate in british pound and japanese yen

Assignment Help Microeconomics

Reference no: EM1374390

Suppose the government cuts its purchases through $120 billion. As a result, budget deficit is decreased by $40 billion, private domestic saving reduced by $10 billion, disposable personal income decreases by $80 billion and the trade deficit is reduced by $15 billion. By how much has national income (Y) changed?

Using demand and supply analysis to assist you, what are the effects on the exchange rate between the British pound and the Japanese yen from:
a. an increase in Japanese interest rates?
b. an increase in the price of British goods?
c. an increase in British interest rates?

Consider a country that initially consumes 100 pairs of shoes per hour, all of which are imported. The price of shoes is $40 per pair before a ban on importing them is imposed. Use a graph to explain what happens to the price of shoes and the quantity of shoes consumed after a total ban on imports.

Reference no: EM1374390

Questions Cloud

Fates of the two companies via a strategic audit : Choose any KPIS based on your industry/interests and explain why the existing KPIs offer a partly-complete measure. For each KPI, come up with an extension that might offer a better and/or in-depth measure.

Concept of derived demand : One way to view the law of diminishing marginal productivity is to say that, The concept of derived demand can best be illustrated by the statement:

Find changes on the equilibrium price : Think the market for personal computers. Assume that the demand is constant : the demand curve does not change. Predict the effects of the following changes on the equilibrium price of computers.

Calculate the total tax bill : Calculate the total tax bill for both low and high income individuals in both countries and fill in the table above with your results and what is the unemployment rate

Effects on exchange rate in british pound and japanese yen : Suppose the government cuts its purchases through $120 billion. As a result, budget deficit is decreased by $40 billion, private domestic saving reduced by $10 billion,

Explain changes occur to demand, supply & quantity demanded : The Wall Street Journal reported that recent law school graduates were having a very difficult time getting jobs in the legal profession. Many law schools said that ten to 20% of their graduates still had not found jobs.

Net effect of arrangement-reduction in income tax liability : The net effect of this arrangement is a reduction in their income tax liability - Will Carol and Jared''s plan work? Explain

Monopolistic and perfect competition market model : Discuss the difference between monopolistic competition, and perfect competition market models and also provide examples from the real life.

Role of supply and demand in decision making : Discuss the difference between a movement along and shift of the demand curve? Demonstrate the impact on the equilibrium price and quantity that results from;

User Account

All Pages