1. The value of the dollar appreciates versus the euro

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Presentation transcript:

1. The value of the dollar appreciates versus the euro 1. The value of the dollar appreciates versus the euro. Who will benefit from this? A. An American exporter. B. An American importer. C. An American traveler to Europe. D. A European traveler to the United States. E. A hotel in Miami that caters to European travelers. Now: Since the dollar appreciated, What will happen to U.S. Exports, Imports, and Xn?

U.S. Exports will decrease as American products become more expensive to the world. U.S. Imports will increase as Americans have more buying power. Therefore, since Xn = Exports minus Imports, Xn decreases.

2. The value of the dollar depreciates versus the Euro 2. The value of the dollar depreciates versus the Euro. Who benefits from this? A. An American exporter B. A European exporter C. A hotel in Paris that caters to American visitors. D. A hotel in Boston that caters to European visitors. E. An American importer Now: Since the dollar depreciated, What will happen to U.S. Exports, Import, and Xn?

U.S. Exports will increase as American products become cheaper to the world. U.S. Imports will decrease as Americans have less buying power. Therefore, since Xn = Exports minus Imports, Xn increases.

3. The euro depreciates versus the American dollar 3. The euro depreciates versus the American dollar. Who benefits from this? A. An American exporter benefits. B. A European exporter benefits. C. An American traveler to Europe benefits. D. A European traveler to America benefits. E. No one in the United States benefits from this. Now: Since the dollar appreciated, What will happen to U.S. Exports, Imports, and Xn?

U.S. Exports will decrease as American products become more expensive to the world. U.S. Imports will increase as Americans have more buying power. Therefore, since Xn = Exports minus Imports, Xn decreases.

4. The value of the Euro appreciates versus the U. S. dollar 4. The value of the Euro appreciates versus the U.S. dollar. Who benefits from this? A. A New York stock broker who specializes in sales to Europeans. B. A Swiss Banker who specializes in selling European bonds to Americans. C. A Swiss traveler to the United States. D. An American traveler to Germany. E. No American benefits from a stronger Euro Now: Since the dollar depreciated, What will happen to U.S. Exports, Import, and Xn?

U.S. Exports will increase as American products become cheaper to the world. U.S. Imports will decrease as Americans have less buying power. Therefore, since Xn = Exports minus Imports, Xn increases.

5. The U.S. dollar depreciates versus the euro. Who benefits from this? A. A Boston businessman who wants to build a factory in Lisbon. B. A Lisbon, Portugal businessman who wants to build a factory in Boston. C. A U.S. factory that buys parts from Europe. D. A Lisbon hotel that caters to visitors from the United States. E. A Lisbon, Portugal traveler who wants to visit family in Boston. Now: Since the dollar depreciated, What will happen to U.S. Exports, Import, and Xn?

U.S. Exports will increase as American products become cheaper to the world. U.S. Imports will decrease as Americans have less buying power. Therefore, since Xn = Exports minus Imports, Xn increases.

6. The U.S. dollar depreciates versus the Euro. Who benefits from this? A. An American company that imports parts from Europe. B. A steelworker in an American steel plant that sells to European customers. C. A Tucson Resort that caters to European travelers. D. A Tucson traveler to Copenhagen. E. A New York store owner that specializes in products from Sweden and who needs to replenish her inventory. Now: Since the dollar depreciated, What will happen to U.S. Exports, Import, and Xn?  

U.S. Exports will increase as American products become cheaper to the world. U.S. Imports will decrease as Americans have less buying power. Therefore, since Xn = Exports minus Imports, Xn increases.