Trade Deficits and J-Curve Adjustment Paths. Assume the United States has the following import/export volumes and...

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Trade Deficits and J-Curve Adjustment Paths. Assume the United States has the following import/export volumes and prices. It undertakes a major "devaluation" of the dollar, say 18% on average against all major trading partner currencies. What is the pre-devaluation and post-devaluation trade balance? Initial spot exchange rate, $/fc Price of exports, dollars ($) Price of imports, foreign currency (fc) Quantity of exports, units Quantity of imports, units Percentage devaluation of the dollar Post-devaluation trade balance Revenues from exports, U.S. dollars Expenditures on imports, foreign currency Expenditures on imports, U.S. dollars Post-devaluation trade balance What is the pre-devaluation trade balance? The revenues from exports are $ (Round to the nearest cent.) The expenditures on imports in foreign currency are fc. (Round to two decimal places.) The expenditures on imports in U.S. dollars are $. (Round to the nearest cent.) Calculate the pre-devaluation trade balance below: (Round U.S. dollar values to the nearest cent and round foreign currency to two decimal places.) Pre-devaluation trade balance Revenues from exports, U.S. dollars Expenditures on imports, foreign currency Expenditures on imports, U.S. dollars Pre-devaluation trade balance (Round to four decimal places.) The new spot exchange rate after devaluation is $fc. The new expenditures on imports in U.S. dollars are $ (Round to the nearest cent.) Calculate the post-devaluation trade balance below: (Round U.S. dollar values to the nearest cent and round foreign currency to two decimal places.) $ fc $ $ fc 2.02 19.4800 12.9200 $ $ 100 120 18.00 Trade Deficits and J-Curve Adjustment Paths. Assume the United States has the following import/export volumes and prices. It undertakes a major "devaluation" of the dollar, say 18% on average against all major trading partner currencies. What is the pre-devaluation and post-devaluation trade balance? Initial spot exchange rate, $/fc Price of exports, dollars ($) Price of imports, foreign currency (fc) Quantity of exports, units Quantity of imports, units Percentage devaluation of the dollar Post-devaluation trade balance Revenues from exports, U.S. dollars Expenditures on imports, foreign currency Expenditures on imports, U.S. dollars Post-devaluation trade balance What is the pre-devaluation trade balance? The revenues from exports are $ (Round to the nearest cent.) The expenditures on imports in foreign currency are fc. (Round to two decimal places.) The expenditures on imports in U.S. dollars are $. (Round to the nearest cent.) Calculate the pre-devaluation trade balance below: (Round U.S. dollar values to the nearest cent and round foreign currency to two decimal places.) Pre-devaluation trade balance Revenues from exports, U.S. dollars Expenditures on imports, foreign currency Expenditures on imports, U.S. dollars Pre-devaluation trade balance (Round to four decimal places.) The new spot exchange rate after devaluation is $fc. The new expenditures on imports in U.S. dollars are $ (Round to the nearest cent.) Calculate the post-devaluation trade balance below: (Round U.S. dollar values to the nearest cent and round foreign currency to two decimal places.) $ fc $ $ fc 2.02 19.4800 12.9200 $ $ 100 120 18.00

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To calculate the predevaluation and postdevaluation trade balance well follow these steps 1 Calculate the ... View the full answer