Suppose the cost of a car produced in the United States is $20,000. The current exchange rate is US$1 = €0.85. Instructions: Round your answers to 2 decimal places. a. What is the cost of the car in euros? T b. Suppose the exchange rate changes to US$1 = €0.75. What is the new euro cost of the car? e c. At the new exchange rate, the quantity of U.S. cars demanded by those holding euros will likely (Click to select) > a. A country has $23,678 million in imports and $24,598 million in exports. Complete the table below based on this information. Instructions: Enter your answers as a whole number Current Account (millions) Credits Debits b. This country is experiencing a trade Click to select) of $ million C. Suppose that imports increase by $500 million, with payments to foreign firms deposited into a U.S. dollar-denominated bank account. Which accounts are affected by this change and how? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s) click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. 2 Current account debits increase by $500 million 2 Current account credits increase by $500 million 2 Financial account debits increase by $500 million 2 Financial account credits increase by $500 million 2 Capital account debits increase by $500 million 2 Capital account credits increase by $500 million



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