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Question: assume the united states exports 1500 computers at a price...

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Assume the United States exports 1,500 computers at a price of $2,000 cach and imports 100 UK autos at a price of £15,000 each. Assume that the dollan/pound exchange rate is $2 per pound. balance prior to a depreciation of the dollars exchange value. 2. (5 points) Suppose the dollars exchange value depeeciates by 10 percent. Assuming that the price clasticity of demand for U.S. exports equals 5 and the price elasticity of demand for U.S imports equals 1, does the dollar depreciation improve or worsen the U.S. trade balance? Why? 3. (5 points) Now assume that the price elasticity of demand for US. exports equals 0.5 and the price elasticity of demand for U.S. imports oquals 0.1. Does this change the outcome? Why? 第5
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