If the exchange rate between the U.S. dollar and the Japanese yen is $1 = 200 yen, then the dollar price of yen is
A. $.005.
B. $.05.
C. $.50.
D. $5.
A. $.005.
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According to this Application, tariffs in the United States are very high on textiles, apparel items and footwear. These tariffs disproportionately impact lower-income households because
A) these products represent a higher fraction of consumption of lower-income households than higher-income households. B) the tariffs are only applicable to lower-income households. C) higher-income households tend to purchase products produced in the United States, which are not subject to tariffs. D) lower-income households tend to purchase more of these items than do higher-income households.
In the figure above, the shift in the supply curve for U.S. dollars from S0 to S2 could occur when
A) the U.S. interest rate falls. B) the expected future exchange rate rises. C) the U.S. interest rate differential increases. D) the current exchange rate falls.
Japan was accused of dumping in the steel industry within the United States when it
A) negotiated an illegal agreement to raise prices with U.S. steel industries. B) prohibited imports of U.S. steel into Japan. C) sold steel in the United States at a price below its cost of production. D) negotiated an illegal trade deal with Canada.
A 2009 Chevrolet model has more horsepower than the 2008 version and is included in the BLS basket of goods. BLS attempts to account for this change in the market basket by
a. dropping the good from the basket. b. substituting in a different vehicle with the same horsepower as the 2008 model. c. adjusting the share of the market basket allocated to transportation. d. adjusting the price of the good to account for the quality change.