1. Usually when the dollar weakens. US exports are expected to pick up and US imports fall. However, inflation plays an important part in this too.
1. If US inflation is 12%. Japanese is 3% and the US dollar depreciates 4%. We would expect US exports to Japan to ______ and US imports from Japan to ______
A. Fall; Rise
B. Fall; Fall
C. Rise: Fall
D. Rise; Rise
2. As the US dollar depreciate a US importer paying MXNN 5471 for a good from Mexico will find the dollar cost they pay for the good to be going up?
A. Vrai
B. Faux
3. Suppose the current account for the US. Shows a deficit of $400 billion in goods/merchandise and a deficit of $800 billion in services, this would imply the US has a relative comparative advantage in the productions of?
A. Good/ merchandise
B. both Good/ merchandise and services
C. Services
D. Neither Good/ merchandise nor service