Question: The following demonstrates a weak (falling or depreciating) dollar. A weak dollar means the dollar buys less of the foreign currency. Compare a stronger dollar

The following demonstrates a weak (falling or depreciating) dollar.

A weak dollar means the dollar buys less of the foreign currency.

Compare a stronger dollar (US$1 = 100 yen) to a weaker dollar (US$1 = 80 yen). With the example below, show how a weak dollar affects the price of a specific U.S. import and export.

US import of a Japanese television that costs 40,000 Yen in Japan:

At US$1 = 100 yen, what is the price in US Dollars?

At US$1 = 80 yen, what is the price in US Dollars?

US export of a bushel of corn that costs $10 in the U.S.:

At US$1 = 100 yen, what is the price in yen?

At US$1 = 80 yen, what is the price in yen?

What might happen to the quantity of U.S. imports with a weak US dollar? Exports? (Increase/decrease?)

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