Solved: Suppose that an automobile costs 30000 in the united, Macroeconomics

+44 141 628 6080
[email protected]

Suppose that an automobile costs 30000 in the united

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

View Complete Question

Solution Preview :

Prepared by a verified Expert

Macroeconomics: Suppose that an automobile costs 30000 in the united

Reference No:- TGS01479995

Now Priced at $25 (50% Discount)

Recommended (93%)

Rated (4.5/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Macroeconomics

Q : George and weezy received 30200 of social security benefits

george and weezy received 30200 of social security benefits this year 12000 for george 18200 for weezy they also

Q : If the society had the first income distribution the

suppose there are two possible income distributions in a society of ten people in the first distribution nine people

Q : Environmental issues faced by business and society research

environmental issues faced by business and societyresearch and explain the importance of an environmental issue

Q : Exercise 61 a foreman thinks that the low efficiency of the

exercise a foreman thinks that the low efficiency of the machine tool operators is directly linked to the high level of

Q : Suppose that an automobile costs 30000 in the united

suppose that an automobile costs 30000 in the united states and 25000 euros in france further suppose that the exchange

Q : 2500kj of heat is absorbed to produce 1 kg of wet steam at

2500kj of heat is absorbed to produce 1 kg of wet steam at a preasure of 1300 kpa from feed water 25degrees celcius

Q : For this portfolio project option you will write a report

for this portfolio project option you will write a report and prepare a powerpoint presentation on a perceived training

Q : How much force is needed to begin moving the book how much

a 203 kg book is placed on a flat desk suppose the coefficient of static friction between the book and the desk is 0462

Q : Is the language 0i10j decidable - please design a turing

is the language 0i10j decidableplease design a turing machine to prove your

1929905

Questions
Asked

3,689

Active Tutors

1418188

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Patient tokala insists that he never dreams

Problem: Forty-year-old Tokala insists that he never dreams. Research suggests that Tokala probably:

Discuss use of electronic devices like social media

Research has found that the use of electronic devices like social media and cell phones is associated with mental health problems,

Can you put this in study guide format

Can you put this in study guide format: External Validity Sample characteristics Stimulus Characteristics Multiple Treatment Interference

What options is true in relation to validity

Question: Which of the following options is true in relation to validity? Question Select one:

Introduce the instrument you are focusing on

Introduce the instrument you're focusing on. Provide some background information about it and state why it's important in psychological assessment.

Determining whether male college students

Dr. Smith is interested in determining whether male college students who have a significant stuttering problem are also likely to be introverted.

Defining characteristic of permissive-indulgent parents

What is a defining characteristic of permissive-indulgent parents? They are indifferent and uninvolved with their children.