Question

3. Would each of the following groups feel satisfied or dissatisfied if the US dollar appreciated?...

3. Would each of the following groups feel satisfied or dissatisfied if the US dollar appreciated?

Explain:

a. Dutch pension funds that have United States government bonds.

b. America's manufacturing industries.

c. Australian tourists planning to take a trip to the United States.

d. An American company that tries to buy property abroad.

Homework Answers

Answer #1

a) satisfied because US bond value increases when dollar appreciate

b) satisfied because they are able to export at less price because dollar appreciate and other currency depreciate

c) dissatisfied they have to pay more Australian dollar for less US dollar because US dollar appreciates

d)satisfied they have to pay less of US dollar to buy property in other countries because other currencies depreciate in respect of US dollar.

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