US Exports After staying around 1.35 US dollars per Euro for years, the exchange rate fell below 1.25 US dollars to a euro during the summer of 2014 . What affect does this have US exports to Europe?
The demand for American goods by Europeans will fall because it takes more euros to convert into a given number of dollars to make a purchase. Likewise, Americans considering European goods now have to convert less dollars into euros to make purchases there. Both effects decrease US exports.
You might also like to view...
The size of the expenditure multiplier is influenced by
i. the marginal propensity to consume. ii. autonomous spending. iii. the marginal tax rate. A) i only B) ii only C) iii only D) i and iii E) ii and iii
Which of the following is more likely to be the price elasticity of demand for the snake bite treatment antivenom?
A. Highly inelastic B. Unit elastic C. Elastic D. Perfectly elastic
The federal income tax code of the United States is
A) progressive. B) proportional. C) regressive. D) progressive for individuals but proportional for married couples.
Which economic concept is illustrated by the saying "You can't have your cake and eat it too"?
a. Private property rights b. Economic freedom c. Scarcity d. Opportunity cost e. Gains from trade