User Account

All Pages

What is the real exchange rate

Assignment Help Macroeconomics
Reference no: EM131101993

Suppose that an automobile costs $30,000 in the United States and 25,000 Euros in France. Further suppose that the exchange rate is .8 (one US dollar = .8 Euros).

  • What is the real exchange rate?
  • In which country is the automobile less expensive?
  • Do your answers suggest that the US will have a trade surplus or a trade deficit with France?
  • Does you answer to c suggest that US citizens will be borrowing money from France or lending money to France?
  • Given the prices of the automobiles in France and the United States, what should the nominal exchange rate be in order to have purchasing power parity

Reference no: EM131101993

Questions Cloud

Design a turing machine to prove your conclusion : Is the language 0i10j decidable - Please design a turing machine to prove your conclusion
How much force is needed to begin moving the book : How much force is needed to begin moving the book? How much force is needed to keep the book moving at constant speed once it begins moving?
A powerpoint presentation on a perceived training need : For this Portfolio Project option, you will write a report and prepare a PowerPoint presentation on a perceived training need and propose a solution. The audience for this report/presentation consists of executive- or management-level decision mak..
Calculate for 1 kg of steam the initial dryness fraction : 2500kj of heat is absorbed to produce 1 kg of wet steam at a preasure of 1300 kPa from feed water 25(degrees celcius). Thereafter the mixture is heated further at constant preassure to a temperature of 291,69degrees celcius) For superheated steam ..
What is the real exchange rate : Suppose that an automobile costs $30,000 in the United States and 25,000 Euros in France. Further suppose that the exchange rate is .8 (one US dollar = .8 Euros). What is the real exchange rate? In which country is the automobile less expensive?
A causal or a correlational study : Exercise 6.1 A foreman thinks that the low efficiency of the machine tool operators is directly linked to the high level of fumes emitted in the workshop. He would like to prove this to his supervisor through a research study.
Explain the importance of an environmental issue : Environmental Issues Faced by Business and Society Research and explain the importance of an environmental issue (fracking, hazardous waste disposal, oil pipeline leaks, deforestation, etc.) faced by business and society.
Marginal utility of income : If the society had the first income distribution, the utilitarian would argue that the marginal utility of income for the person with an income of $10,000 is lower or higher than the marginal utility of income for someone with an income of $30,000..
City of ranburne bonds and dividend income : George and Weezy received $30,200 of Social Security benefits this year ($12,000 for George; $18,200 for Weezy). They also received $5,000 of interest from jointly owned City of Ranburne bonds and dividend income.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Comparative advantage and terms of trade

Suppose two nations are considering specializing in either calculators or personal computers. If solely producing calculators, country A can produce 300 and country B can produce 400.

  Why does the aggregate demand curve slope downward

Why does the aggregate demand curve slope downward?Give at least three reasons and examples when addressing thisquestion. Identify an event that would shift the AD curve and whichdirection the AD curve will shift.

  Assignment details assignment description

In the workplace, employers should create a safe and healthy environment. The Occupational Safety and Health Administration (OSHA) was created to ensure this environment. This week's reading assignment and the M.U.S.E. item OSHA Standards may be h..

  Explain how sensitive do you think your organization

Explain how sensitive do you think your organization is to economic expansions upswings and contractions.

  Ethical challenge in hiring non cpa''s

write a paper explaining issues that bring concern to pricing your services and products. what ethical challenges will you face in hiring non CPA's.

  What could happen to the u.s. labor markets if immigration

Immigration is a major topic of concern in today’s economy. What are the possible problems and solutions for these concerns and what could happen to the U.S. labor markets if immigration is not controlled?

  Show how a uk exporter can avoid exchange risk

Show how a UK exporter can avoid exchange risk by covering in either the spot market or the forward market. When will the exporter be indifferent between these two forms of cover.

  Find quantity -price and price elasticity of demand

The Wozniak Corporation, a maker of aircraft engines, determines that in 2008 the demand curve for its product is as follows-What is the price elasticity of demand if price equals $500?

  Illustrate what would be a monetary policy prescription

Illustrate what would be a monetary policy prescription to reduce or eliminate deflation.

  Define the law of demand

Use Internet, and other sources of literature and locate an article concerning trends in consumption patterns.

  Problem regarding the regional or global affairs

1. Define JFK's doctrine and summarize the regional or global events during the Cold War leading up to the formation of JFK's doctrine describe the Cold War relationship that existed between Cuba and the U.S. before the JFK's doctrine was announce..

  Customs and traditions and economic roles

1. An economy in which production is based on customs and traditions and economic roles are typically passed down from one generation to the next

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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