Question: Show the effect of dollar appreciation and depreciation with the Euro on the price of US exports and imports by updating the table below:
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R = Euro/$
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Domestic Price
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Jan 01:
R = 1.06
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Jan 02:
R = 1.14
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Effect on Exports (X)
and Imports (M)
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U.S. exports: Televisions
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$1,000
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U.S. imports: European cars
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Euro 25,000
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Feb 02:
R =1.15
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May 02:
R = 1.08
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U.S. exports: Televisions
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$1,000
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U.S. imports: European cars
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Euro 25,000
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