Suppose the U.S. discovers a new technology that will improve its exports. Therefore, there are rumors that

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Suppose the U.S. discovers a new technology that will improve its exports. Therefore, there are rumors that this technology will bring the U.S. trade balance from trade deficits to expected long-term surpluses. What would happen to the exchange rate value of the U.S. dollar from this news? Do you anticipate any difference in the dollar values between short run and long run?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
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International Money And Finance

ISBN: 9780323906210

10th Edition

Authors: Michael Melvin, Stefan C. Norrbin

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