Supply Demand QUANTITY OF DOLLARS Refer to the figure above. When American travelers spend money overseas, that is part of U.S. imports. When foreigners come to the U.S. and spend money, that is part of U.S. exports. If after the pandemic there is a permanent reduction in overseas travel by U.S. residents but foreign travel to the U.S. comes back, which curve in the figure would shift and in which direction? The demand curve in graph (a) would shift to the right. The supply curve in graph (c) would shift to the right. The demand curve in graph (c) would shift to the right. REAL EXCHANGE RATE

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: The Basic Tools Of Finance
Section: Chapter Questions
Problem 1CQQ
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start_frame auto.d21?ou=1492871&isprv=&drc%=0&qi=/
Casey Rosenberg: Attempt 1
Graph (a)
Graph (b)
NCO
Demand
Supply
NET CAPITAL OUTFLOW
QUANTITY OF LOANABLE FUNDS
Graph (c)
Supply
MacBook Air
DII
F12
F10
F11
F9
80
F7
F8
F6
F5
F4
F3
23
24
7
8.
4
Y
U
P
D
G
J.
K
AL EXCHANGE RATE
REAL INTEREST RATE
Transcribed Image Text:start_frame auto.d21?ou=1492871&isprv=&drc%=0&qi=/ Casey Rosenberg: Attempt 1 Graph (a) Graph (b) NCO Demand Supply NET CAPITAL OUTFLOW QUANTITY OF LOANABLE FUNDS Graph (c) Supply MacBook Air DII F12 F10 F11 F9 80 F7 F8 F6 F5 F4 F3 23 24 7 8. 4 Y U P D G J. K AL EXCHANGE RATE REAL INTEREST RATE
G Refer to the figure above. Whe x
Gecon 202 msu final exam -Go X
FS21 EC 202: Introd X
\luser/attempt/quiz_start_frame_auto.d21?ou=14928718&isprv=&drc%3D0&qi3705003&cfql=D0&dnb=0&fromQB%3D0
1
ne Left:0:53:53
Casey Rosenberg: Attempt 1
Graph (c)
Supply
Demand
QUANTITY OF DOLLARS
Refer to the figure above. When American travelers spend money overseas, that is part of
U.S. imports. When foreigners come to the U.S. and spend money, that is part of U.S.
exports. If after the pandemic there is a permanent reduction in overseas travel by U.S.
residents but foreign travel to the U.S. comes back, which curve in the figure would shift
and in which direction?
OThe demand curve in graph (a) would shift to the right.
The supply curve in graph (c) would shift to the right.
The demand curve in graph (c) would shift to the right.
MacBook Air
80
DI
DD
F3
F5
F6
F7
FB
F9
F10
F11
%23
24
&
*
2
3
4
7
8.
W
E
Y
U
S
F
H
J.
K
* 00
ト
REAL EXCHANGE RATE
Transcribed Image Text:G Refer to the figure above. Whe x Gecon 202 msu final exam -Go X FS21 EC 202: Introd X \luser/attempt/quiz_start_frame_auto.d21?ou=14928718&isprv=&drc%3D0&qi3705003&cfql=D0&dnb=0&fromQB%3D0 1 ne Left:0:53:53 Casey Rosenberg: Attempt 1 Graph (c) Supply Demand QUANTITY OF DOLLARS Refer to the figure above. When American travelers spend money overseas, that is part of U.S. imports. When foreigners come to the U.S. and spend money, that is part of U.S. exports. If after the pandemic there is a permanent reduction in overseas travel by U.S. residents but foreign travel to the U.S. comes back, which curve in the figure would shift and in which direction? OThe demand curve in graph (a) would shift to the right. The supply curve in graph (c) would shift to the right. The demand curve in graph (c) would shift to the right. MacBook Air 80 DI DD F3 F5 F6 F7 FB F9 F10 F11 %23 24 & * 2 3 4 7 8. W E Y U S F H J. K * 00 ト REAL EXCHANGE RATE
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