Problem: Macroeconomic - Article Reflection
Read the article "Why the U.S. dollar continues to rise, defying a 2021 consensus trade" by William Watts.
A. In a word document or a pdf file, submit the following:
B. A detailed summary of the article (5-6 sentences ONLY).
a. Note: Focus on the exchange rate, the implications, and the causes.
C. What is happening with the U.S. dollar during the COVID-19 pandemic?
a. Why was it predicted that the U.S. dollar will depreciate rather than appreciate in 2021? List at least two factors.
b. For each factor that you listed, apply the three-step recipe and draw the corresponding graphs of the market for U.S. dollars.
c. Now, determine why the U.S. dollar appreciated instead. List at least two factors.
d. For each factor that you listed, apply the three-step recipe and draw the corresponding graphs of the market for U.S. dollars.
D. Now, create your own example!
a. Pick five countries and crate a table reporting their US Dollar exchange rates for February 2020 and February 2021.
b. Determine whether the dollar appreciated or depreciated from the year before.
c. If the dollar appreciated or depreciated, determine what it means for the level of imports and exports of the United States.
The response should include a reference list. One-inch margins, Using Times New Roman 12 pnt font, double-space and APA style of writing and citations.