--%>
Assignment Help - homework help

Effects of that depreciation or appreciation

Would a decline in U.S. consumer income or a weakening of U.S. preferences for foreign products cause the dollar to depreciate or appreciate?  Other things equal, what would be the effects of that depreciation or appreciation on U.S. exports and imports?

E

Expert

Verified

A decline in U.S. incomes or a weakening of U.S. preferences for foreign goods would reduce U.S. imports, reducing U.S. demand for foreign currencies. These currencies would depreciate (the dollar would appreciate). Dollar appreciation means U.S. exports would decline and U.S. imports would increase.

   Related Questions in Business Economics

  • Q : Speculation and intermediary operations

    Transaction costs tend to be decreased, prices to consumers are classically stabilized and lowered, and economy-wide efficiency is generally improved through: (1) rigid wage and price controls. (2) central planning that fosters monopo

    		•
  • Q : David Hume statement regarding money in

    In modern parlance, David Hume statement regarding money which is Tis none of the wheels of trade. And tis the oil, was referring to the notion that money: (i) is relatively costly to produce. (ii) facilitates divisions of labor and specialization and

    		•
  • Q : Describe Net income approach Briefly

    Briefly describe Net income approach? Named who recommended this theory?

    		•
  • Q : Problem on private resource ownership

    Relative to most of the other countries, the United States encompasses historically relied more greatly on: (1) Public resource ownership and private income distribution. (2) Decentralized decision making and private resource ownership. (3) Exports of textiles, automo

    		•
  • Q : Illustrate Qualification in

    Illustrate Qualification in International Trade?

    		•
  • Q : Reduce price differences by arbitrage

    When government intervention is not present, than arbitrage: (w) will reduce price differences when similar good sells at various prices within separate markets. (x) results into economic losses for traders. (y) causes high economic profits for mercha

    		•
  • Q : Illustrate the Law of supply Illustrate

    Illustrate the Law of supply?

    		•
  • Q : International trade to the U.S. economy

    How important is international trade to the U.S. economy?  In terms of volume, does the United States trade more with industrially advanced economies or with developing economies? What country is the United States’ most important trading partner, quantitati

    		•
  • Q : Discuss the economic aspects of ticket

    Discuss the economic aspects of ticket scalping also identifying the gainers and losers?

    		•
  • Q : Describe the types of multiplant firms

    Describe the types of multiplant firms?

    		•