[Answer] Suppose that the United States and China trade exclusively with each other. What will happen to the value of the U.S. dollar ceteris paribus if Chinese interest rates rise significantly?

Answer: The U.S. dollar will depreciate.
Suppose that the United States and China trade exclusively with each other. What will happen to the value of the U.S. dollar ceteris paribus if Chinese interest rates rise significantly?

The balance of payments (also known as balance of international payments and abbreviated B.O.P. or BoP) of a country is the difference between all money flowing into the country in a particular period of time (e.g. a quarter or a year) and the outflow of money to the rest of the world.These financial transactions are made by individuals firms and government bodies to compare receipts and …

Puerto Rico (Spanish for ‘Rich Port’; abbreviated PR Taino: Boriken Borinquen) officially the Commonwealth of Puerto Rico (Spanish: Estado Libre Asociado de Puerto Rico lit. ‘Free Associated State of Puerto Rico’) and from 1898 to 1932 also called Porto Rico in English is an unincorporated territory of the United States located in the northeast Caribbean Sea approximately 1 000 miles …

Economics (/ ˌ iː k ə ˈ n ɒ m ɪ k s ˌ ɛ k ə-/) is the social science that studies how people interact with value ; in particular the production distribution and consumption of goods and services.. Economics focuses on the behavio…

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