Economics
1. Explain how each of the following will affect the relative values of the dollar and the French franc:
-Income growth higher in the United States than in France.
-Inflation higher in France than in the United States.
-A real interest rate higher in the United States than in France.
2. Classify each of the following as debits or credits in the U.S. balance of payments.
a. Americans buy chocolate from the Swiss.
b. U.S. gives foreign aid to Bosnia.
c. British investors purchase U.S. government bonds.
d. American tourists travel to Australia.
e. Volkswagen earns profits in the United States from its new cars.
f. Toyota builds a new plant in Ohio.
g. Capital Records sells rock and roll music in Sweden.
h. German consumer buy Ronco Vegematics made in United States.
i. Procter & Gamble earns profits in their Mexican facility.
j. Russian tourists travel to United States.
3. What will happen to a country that fixes the price of foreign exchange below equilibrium?
4. What factors will shift the supply and demand for currency?
5. What are the three categories of transactions in the balance of payments? Give an example of each.
6. What will happen to the supply of dollars, the demand for dollars, and the equilibrium exchange rate of the dollar in each of the following cases?
a. Americans buy more European goods.
b. Europeans invest in U.S. stock market.
c. European tourists flock to United States.
d. Europeans buy U.S. government bonds.
e. American tourists flock to Europe.
7. Economists sometimes say that the current exchange rate system is a dirty float system. What does this mean?
8. What are the main arguments presented against flexible exchange rates?
89.
American urban society in 50s till now
Describe how America cities were at their peaks in the 40s and 50s and then fall into hard times in the 60s, 70s and 80s and starts its comeback now.
