Economics 14/e   McConnell
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Chapter 38 Web-Based Questions

38-15 Web-Based Question 

U.S. International Trade in Goods and Services—Latest Figures The U.S. Census http://www.census.gov/indicator/ www/ustrade.html provides the latest data on U.S. trade in goods and services. Over the past year has the trade balance in goods and services improved (that is yielded a smaller deficit or larger surplus) or deteriorated? The major U.S. trade strength is in which category: goods or services? The largest increases in exports were in what products? The largest increases in imports were in what products?

38-16 Web-Based Question  

The Yen/Dollar Exchange Rate and Trade Deficits The Japanese yen/U.S.$ exchange rate is determined by market forces and changes frequently. A key determinant of exchange rates is a trade deficit or a trade surplus. Other things equal if the United States has a trade deficit with Japan the dollar should depreciate relative to the yen. The Federal Reserve Board of Governors http://www.bog.frb.fed.us/releases (Foeign Exchange Rates—Historical Data) provides yen/dollar exchange rates for the last decade. Trade data can be found at http://www.census.gov/indicator/www/ustrade.html under Exports Imports and Balance of Goods by Selected Countries. Select a time period and compare the U.S. trade deficit with Japan with the yen/dollar exchange rate during that period. Do the data support the theory? What other factors might be influencing the yen/dollar rate?

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