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    you have just been hired by the u.s. government to analyze the following scenario. suppose the u.s. agricultural industry is concerned about the level of fruit and vegetable imports to the united states, a practice that hurts domestic producers. lobbyists claim that implementing a tariff on imports would shrink the size of the trade deficit. the following exercise will help you to analyze this claim.

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    get you have just been hired by the u.s. government to analyze the following scenario. suppose the u.s. agricultural industry is concerned about the level of fruit and vegetable imports to the united states, a practice that hurts domestic producers. lobbyists claim that implementing a tariff on imports would shrink the size of the trade deficit. the following exercise will help you to analyze this claim. from EN Bilgi.

    Aplia_ Student Question 4 Chapter 19

    View Aplia_ Student Question 4 Chapter 19 from ECON 1166_64973 at City Colleges of Chicago, Richard J Daley College. 4.Analyzingtheeffectsofatradedeficit YouhavejustbeenhiredbytheU.S.governmenttoanaly

    Aplia_ Student Question 4 Chapter 19 -...

    City Colleges of Chicago, Richard J Daley College

    ECON 1166_64973 Jenn12890 3 97% (155)

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    4. Analyzing the effects of a trade deficitYou have just been hired by the U.S. government to analyze the following scenario. Suppose the U.S.agricultural industry is concerned about the level of fruit and vegetable imports to the United States, apractice that hurts domestic producers. Lobbyists claim that implementing a tariff on imports would shrinkthe size of the deficit. The following exercise will help you to analyze this claim.The following graph shows the demand and supply of U.S. dollars in a model of the foreign­currencyexchange market.Shift the demand curve, the supply curve, or both to show what would happen if the government decided toimplement the tariff.&RUUHFW $QVZHU'HPDQG6XSSO\5($/ (;&+$1*( 5$7( ±8QLWV RI IRUHLJQ FXUUHQF\ SHU GROODU²48$17,7< 2) '2//$56'³'´6XSSO\

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    Points:0 / 1Points:0 / 1Close ExplanationPoints:0.25 / 1Close ExplanationGiven this change, the value of a dollarappreciates.Explanation:

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    Principles of Macroeconomics, Mankiw, Chapter 19 exam questions Flashcards

    a macroeconomic theory of the open economy Learn with flashcards, games, and more — for free.

    Principles of Macroeconomics, Mankiw, Chapter 19 exam questions

    Use the open-economy macroeconomic model to answer next two questions.

    Suppose that the government is running a significantly higher budget deficit.

    7. In the long-run, the larger federal deficit would ____ the supply of loanable funds in the loanable funds market and ____ the real interest rates.

    a. increase; raise. b. reduce; lower. c. increase; lower. d. reduce; raise.

    e. not change; not change.

    Click card to see definition 👆

    D. reduce; raise.

    Higher Federal deficit reduces the national saving, which moves the supply curve of loanable funds left (reduces), which raises real interest rates.

    19-1A

    Click again to see term 👆

    Suppose that the government is running a significantly higher budget deficit.

    8. In the long-run, with the larger federal deficit we would expect the following to happen in the foreign exchange market: the equilibrium real exchange rate to ____ and net capital outflow to ____.

    a. appreciate; increase.

    b. appreciate; decrease.

    c. depreciate; increase.

    d. depreciate; decrease.

    e. depreciate; stay unchanged.

    Click card to see definition 👆

    B. Appreciate; Decrease

    Higher federal deficit raises the real interest rate, which reduces net foreign investment. This reduces the supply of dollars to be exchanged, causing the real exchange rate to appreciate, causing US goods to become more expensive compared to foreign goods, makes US exports fall and US imports rise, causing net exports (and NX=NCO) to decrease.

    Click again to see term 👆

    1/10 Created by karouda

    a macroeconomic theory of the open economy

    Terms in this set (10)

    Use the open-economy macroeconomic model to answer next two questions.

    Suppose that the government is running a significantly higher budget deficit.

    7. In the long-run, the larger federal deficit would ____ the supply of loanable funds in the loanable funds market and ____ the real interest rates.

    a. increase; raise. b. reduce; lower. c. increase; lower. d. reduce; raise.

    e. not change; not change.

    D. reduce; raise.

    Higher Federal deficit reduces the national saving, which moves the supply curve of loanable funds left (reduces), which raises real interest rates.

    19-1A

    Suppose that the government is running a significantly higher budget deficit.

    8. In the long-run, with the larger federal deficit we would expect the following to happen in the foreign exchange market: the equilibrium real exchange rate to ____ and net capital outflow to ____.

    a. appreciate; increase.

    b. appreciate; decrease.

    c. depreciate; increase.

    d. depreciate; decrease.

    e. depreciate; stay unchanged.

    B. Appreciate; Decrease

    Higher federal deficit raises the real interest rate, which reduces net foreign investment. This reduces the supply of dollars to be exchanged, causing the real exchange rate to appreciate, causing US goods to become more expensive compared to foreign goods, makes US exports fall and US imports rise, causing net exports (and NX=NCO) to decrease.

    10. Which of the following would help explain why the aggregate demand curve slopes downward?

    a. An unexpectedly low price level raises the real wage, which causes firms to hire fewer workers and produce a smaller quantity of goods and services.

    b. A lower price level causes the real exchange rate to appreciate, which stimulates spending on net exports.

    c. A higher price level increases real wealth, which stimulates spending on consumption.

    d. A lower price level reduces the interest rate, which encourages greater spending on investment goods.

    d. A lower price level reduces the interest rate, which encourages greater spending on investment goods.

    When the price level is low, consumers demand a relatively small amount of currency because it takes a relatively small amount of currency to make purchases. Thus, consumers keep larger amounts of currency in the bank. As the amount of currency in banks increases, the supply of loans increases. As the supply of loans increases, the cost of loans--that is, the interest rate--decreases. Thus, a low price level induces consumers to save, which in turn drives down the interest rate. A low interest rate increases the demand for investment as the cost of investment falls with the interest rate. Thus, a drop in the price level decreases the interest rate, which increases the demand for investment and thereby increases aggregate demand.

    Suppose the U.S. agricultural industry is concerned about the level of fruit and vegetable imports to the United States, a practice that hurts domestic producers. Lobbyists convinced the government to implement a tariff on imports, hoping to shrink the size of the trade deficit in the long-run.

    11. When the above policy, in the loanable funds market, the equilibrium real interest rate _______; and the amount of investment _______ in the long-run.

    a. increases; increases.

    b. increases; decreases.

    c. decreases; increases.

    d. decreases; decreases.

    e. stays the same; stays the same.

    E. Stays the same, stays the same.

    Suppose the U.S. agricultural industry is concerned about the level of fruit and vegetable imports to the United States, a practice that hurts domestic producers. Lobbyists convinced the government to implement a tariff on imports, hoping to shrink the size of the trade deficit in the long-run.

    Source : quizlet.com

    USDA ERS

    This data set provides import values of edible products (food and beverages) entering U.S. ports and their origin of shipment. Data are from the U.S. Department of Commerce, U.S. Census Bureau. Food and beverage import values are compiled by calendar year into food groups corresponding to major commodities or level of processing. At least twenty years of annual data are included, enabling users to track long-term growth patterns.

    U.S. Food Imports

    U.S. consumers demand variety, quality, and convenience in the foods they consume. As Americans have become wealthier and more ethnically diverse, the American food basket reflects a growing share of tropical products, spices, and imported gourmet products. Seasonal and climatic factors drive U.S. imports of popular types of fruits and vegetables and tropical products, such as cocoa and coffee. In addition, a growing share of U.S. imports can be attributed to intra-industry trade, whereby agricultural-processing industries based in the United States carry out certain processing steps offshore and import products at different levels of processing from their subsidiaries in foreign markets.

    This data set provides import values of edible products (food and beverages) entering U.S. ports and their origin of shipment. Data are from the U.S. Department of Commerce, U.S. Census Bureau. Food and beverage import values are compiled by calendar year into food groups corresponding to major commodities or level of processing. At least twenty years of annual data are included, enabling users to track long-term growth patterns.

    All tables in one file

    Data Set Last Updated Next Update

    All tables in one file

    Summary data on annual food imports, values and volume by food category and source country, 1999-2021 3/16/2022

    Source : www.ers.usda.gov

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