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Effect of Dollar Appreciation and Depreciation

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Show the effects of the dollar appreciation and depreciation with the euro on the price of U. S. exports and imports by updating the attached table.

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The solution explains the effect of Dollar Appreciation and Depreciation on U.S. Exports and Imports

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See Also This Related BrainMass Solution

Effects of Currency Appreciation and Depreciation

a) Given illustrative data for a company selling its output in a foreign country, calculate effects of an appreciation and a depreciation in the exchange rate on the price of its output in that country and the likely effects on the demand for its output.

b) For a company sourcing key inputs in a foreign country, calculate effects of an appreciation and depreciation in the exchange rate on its input prices and the likely effects on the company's cost of production.

c) can a devaluation of the dollar, improve US GDP and provide economic growth? Based on your observation, is that statement true and why? Explain and justify your claims

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