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Appreciation & Depreciation

1. Show the effect of dollar appreciation and depreciation with the Euro on the price of US exports and imports by updating the table below:

R = Euro/$ Domestic Price Jan 01:
R = 1.06 Jan 02:
R = 1.14 Effect on Exports (X)
and Imports (M)
U.S. exports: Televisions $1,000
U.S. imports: European cars Euro 25,000
Feb 02:
R =1.15 May 02:
R = 1.08
U.S. exports: Televisions $1,000
U.S. imports: European cars Euro 25,000

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1. Show the effect of dollar appreciation and depreciation with the Euro on the price of US exports and imports by updating the table below:

R = Euro/$ Domestic Price Jan 01:
R = 1.06 Jan 02:
R = 1.14 Effect on Exports (X)
and Imports ...

Solution Summary

This solution is comprised of a detailed explanation to show the effect of dollar appreciation and depreciation with the Euro on the price of US exports and imports by updating the table below.

$2.19