Depreciation of Exchange Rate Worksheet - Trade & ER's Simulation [Virtual Learning Arcade]
An interactive worksheet looking at the impact of an depreciation of the exchange rate on the trade balance as part of the trade balance and exchange rate simulation in the Virtual Learning Arcade.
Trade Balance: A Depreciation of the Exchange Rate | |
The aim of these questions is to look at the consequences of a depreciation of the exchange rate on the trade balance.
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Given the following settings, what happens to the trade balance if there is a 8% depreciation of the currency?;
- PED of Imports = -0.3
- PED of Exports = -0.4
- Quantity of Imports = 14
- Quantity of Exports = 8
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(Type your answer to the previous question in the box below, then click on explain)
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Submitted by bized on Wed, 14/03/2001 - 13:00
