[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 productivity in China is greater than productivity in the United States?

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 productivity in China is greater than productivity in the United States?

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 …

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 behaviour and interactions of economic agents and how economies work. Microeconomics analyzes basic elements in the economy …

Leave a Reply