Why is the foreign exchange market so vital?

What will be an ideal response?

The foreign exchange market is the central component of the international capital market. The exchange rates it sets help determine the profitability of international transactions of all type. The exchange rates show valuable economic signals to households and firms involved in international trade and investment.

Economics

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Refer to the above table. The equilibrium price of tablets is

A. $500. B. $550. C. $650. D. $700.

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The amount of output lost when the inflation rate is reduced by one percentage point is called

A) Okun's law. B) the sacrifice ratio. C) the Solow residual. D) Planck's constant.

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Economics

International Trade in Goods

The Chapter focuses on specialization and trade. Use the internet to examine international trade across countries. Examine the Economic Report of the President. Click on the table for U.S. international trade in goods by area. Use the data in this table to create a bar graph showing trade between the United States and Canada, Japan, and Western Europe. Use one bar each to represent exports from the U.S. to each of the other countries and another bar for each import from the other countries to the U.S. Use this graph to answer the following.
  • Which country or region sells the most to the U.S.?
  • Which country or region purchases the most from the U.S.?
  • Why would industrial nations trade with each other? wouldn't they all have the same ability to specialize in hi-tech and high-skilled industries?

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Economics

A government may decide that by running large budget deficits it can make crucial long-term investments in human capital and physical infrastructure that will build the long-term __________________ of a country.

a. effectiveness b. profitability c. employment d. productivity

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Economics