Advanced Placement (AP) College

Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer.


Japan and the United States are major trading partners and the exchange rate between the Japanese yen and the United States dollar is determined in a flexible foreign exchange market.

(a) Assume real income increased in the United States. Draw a correctly labeled graph of the foreign exchange market for the yen, and show the effect of the increased real income in the United States on the equilibrium exchange rate for the yen.

(b) Will each of the following increase, decrease, or stay the same as a result of the increase in the United States real income?

(i) Japan’s net exports. Explain.

(ii) Unemployment in Japan. Explain.

(iii) Japan’s long-run aggregate supply

(c) Assume instead household savings increased in the United States. Draw a correctly labeled graph of the loanable funds market in the United States, and show the effect of the increase in household savings on the equilibrium real interest rate.

(d) Based on the change in the equilibrium real interest rate identified in part (c), what will happen to financial capital flows to the United States?

(e) Based on your answer to part (d), what will happen to the international value of the dollar in the foreign exchange market? Explain.

(f) Based on your answer to part (e), will the Federal Reserve buy or sell yen in the foreign exchange market to stabilize the dollar/yen exchange rate? Explain.

Include Correctly Labeled Diagrams, If Useful Or Required, In Explaining Your Answers. A Correctly Labeled

Answers

Answer 1

Answer:

Not sure but this is how the mister solved it with us. If u see any wrong answers please help by correcting it.

A) a correctly labeled graph is attached

B)

( i ) increase, because the demand of Japanese good will increase, which will increase the net exports.

( ii ) decrease, because the demand for labor will go up (increase), leading to a decrease in the unemployment.

( ii ) stay the same, because the long-run aggregate supply will not be affected by the increase in income.

C) the graph is attached

D) There will be financial capital outflows

Explanation:

There will be a decrease In the interest rate, as well as an increase in the supply of loanable funds, which has changed the equilibrium rate, by that the financial capital flow will be decreasing ( outflow )

E) that the dollar will depreciate the financial capital will flow out of the United

States seeking higher returns on financial investments in foreign countries, which will result in a decrease in the

demand for the dollar or an increase in the supply of the dollar.

Explanation:

It will depreciate, because initially when the dollar was worth a lot of money, people will buy more yen, if that keeps going on the yen will become stronger, because its demand will increase, but the dollar will decrease in value. ( depreciate)

- increase the supply of the dollar

- decrease the demand of the dollar

F) it will sell the yen in the foreign exchange market, by that the supply of the yen will increase and the demand of the dollar will increase, which will cause an appreciation to the dollar to yen.

Include Correctly Labeled Diagrams, If Useful Or Required, In Explaining Your Answers. A Correctly Labeled
Include Correctly Labeled Diagrams, If Useful Or Required, In Explaining Your Answers. A Correctly Labeled
Answer 2

The correct answers are given as follows:

B) ( i ) increase, because the demand for Japanese goods will increase, which will increase the net exports.( ii ) decrease, because the demand for labor will go up (increase), leading to a decrease in unemployment.( ii ) stay the same, because the long-run aggregate supply will not be affected by the increase in income.D) There will be financial capital outflows

What are Trade Partners?

This refers to a group of people, usually a country ir company that engages in business deals together.

Hence, we can note that Japanse net exports would increase because there would be a rise in demand, there would be a decrease in unemployment in Japan as a result of demand for labor and Japan’s long-run aggregate supply would remain the same.

Furthermore, with a change in the equilibrium real interest rate, there would be financial capital flows to the United States.

Read more about trade partners here:

https://brainly.com/question/26845115

Include Correctly Labeled Diagrams, If Useful Or Required, In Explaining Your Answers. A Correctly Labeled
Include Correctly Labeled Diagrams, If Useful Or Required, In Explaining Your Answers. A Correctly Labeled

Related Questions

Heyy! Can someone please help me with! No links or I’ll just report you

Answers

The answer should be the third choice.

48:21
Principle types of crime in the United States include
a. violent crimes.
c. white collar crime.
b. crimes against property.
d. all of the above
Please select the best answer from the choices provided
Ο Α
О В
Ос
OD
Mark this and retum
Next
Submit

Answers

Answer:

Hello There!!

Explanation:

I believe the answer is d. all of the above.

hope this helps,have a great day!!

~Pinky~

A store uses binary numbers to assign a unique binary sequence to each item in its inventory. What is the minimum number of bits required for each binary sequence if the store has between 75 and 100 items in its inventory?
a. 6
b. 5
c. 7
d. 8

Answers

Answer: C

Explanation:

Introduction:

Binary numbers are used by different departmental stores to keep track of their inventory.

Explanation:

For this the minimum binary numbers should be 8 bits which can represent 256 unique values.

If a store needs to represent its inventory items between 25 to 75, it should use at least 8 bits which can formulate a eight bit number for every item.

Conclusion:

Therefore the correct answer is d. 8

Learn more at https://brainly.com/question/20754273

What does it mean for a population to grow by more than 100%?

Answers

Population growth I think don’t be mad
Correct me if I’m wrong, but I think it would be Over population

what is the Study of the interactions of organisms with one another and with their environment?

Answers

Answer:

The study of how organisms interact with each other and with their environment is called ecology.

Explanation:

Ecology studies ecosystems, which are areas made up of both living and nonliving factors that interact with each other constantly. Within an ecosystem, there is a community of living things and these are the biotic factors. There are also many nonliving factors, called abiotic factors, and these include the temperature, amount of sunlight, weather and wind, precipitation, and pH of water. The living organisms interact with and depend on each other for food, and they also interact with the environment. For example, the amount of sunlight and precipitation in an area affects the plant life that grows there. This in turn determines the types of animals that are able to survive in that particular environment.

Jim is renovating his boutique. He wants to redo the display area of his store. Jim is paying special attention to the placement of the merchandise throughout the store. He wants to display it in a creative, aesthetically pleasing manner to attract customers. Jim is engaging in .

Answers

Answer:

Explanation:

In the art of advertising, Jim is window-dressing his boutique.

Examples of fast-moving consumer goods are
O newspapers
Ovens
Ofrozen prepared meals
O refrigerators

Answers

Answer:

• newspapers

• Frozen prepared meals

Explanation:

Fast-moving consumer goods, are also called consumer packaged goods. They are the products which are sold quickly and they're usually cheap.

Examples of fast-moving consumer goods are non-durable household goods like frozen prepared meals, toiletries, cosmetics, packaged foods, beverages, candies, etc. They also have low profit margin. Based on the examples given above, the answer are newspapers and frozen prepared meals.

What determines how far ink travels up the filter paper during the lab that separates
out the ink?
1) ink charge
2) ink color
3) ink molecule's relative mass
4) None of the answer choices are correct.

Answers

Its number four
Xxxxxxxx

What is the safest way to defrost meat?

Answers

Answer:

in the refrigerator, in cold water, and in the microwave. Never defrost on the counter or in other locations. Refrigerator:. It's best to plan ahead for slow, safe thawing in the refrigerator.

Explanation:

28 cm
16 cm
8 cm
1
1
12 cm
14 cm

Answers

Answer:

16

Explanation:

you add 2 to the previous number

Manufacturing equipment is related to products as road is to related to accidents transportation cars construction traffic signs

Answers

Hello there , where is the question here ?
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