//===== Section 13 figures ro resize
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xBookUtils.showAnswers['krugmanwellsmodulesmacro3-s13m43-cyu-1a'] = "The sale of the new airplane to China represents an export of a good to China and so enters the current account.";
xBookUtils.showAnswers['krugmanwellsmodulesmacro3-s13m43-cyu-1b'] = "The sale of Boeing stock to Chinese investors is a sale of a U.S. asset and so enters the financial account.";
xBookUtils.showAnswers['krugmanwellsmodulesmacro3-s13m43-cyu-1c'] = "Even though the plane already exists, when it is shipped to China it is an export of a good from the United States. So the sale of the plane enters the current account.";
xBookUtils.showAnswers['krugmanwellsmodulesmacro3-s13m43-cyu-1d'] = "Because the plane stays in the United States, the Chinese investor is buying a U.S. asset. So this is identical to the answer in part b: the sale of the jet enters the financial account.";
xBookUtils.showAnswers['krugmanwellsmodulesmacro3-s13m43-cyu-2'] = "The collapse of the U.S. housing bubble and the ensuing recession led to a dramatic fall in interest rates in the United States because of the deeply depressed economy. Consequently, capital inflows into the United States dried up.";
xBookUtils.showAnswers['krugmanwellsmodulesmacro3-s13m43-ct-1'] = "Your graphs should look like the following.
";
xBookUtils.showAnswers['krugmanwellsmodulesmacro3-s13m44-cyu-1a'] = "The increased purchase of Mexican oil would cause U.S. individuals (and firms) to increase their demand for the peso. To purchase pesos, individuals would increase their supply of U.S. dollars to the foreign exchange market, causing a rightward shift in the supply curve of U.S. dollars. This would cause the peso price of the dollar to fall (the amount of pesos per dollar would fall). The peso would appreciate and the U.S. dollar would depreciate as a result.";
xBookUtils.showAnswers['krugmanwellsmodulesmacro3-s13m44-cyu-1b'] = "With the appreciation of the peso it would take more U.S. dollars to obtain the same quantity of Mexican pesos. If we assume that the price level (measured in Mexican pesos) of other Mexican goods and services would not change, other Mexican goods and services would become more expensive to U.S. households and firms. The dollar cost of other Mexican goods and services would rise as the peso appreciated. So Mexican exports of goods and services other than oil would fall.";
xBookUtils.showAnswers['krugmanwellsmodulesmacro3-s13m44-cyu-1c'] = "U.S. goods and services would become cheaper in terms of pesos, so Mexican imports of goods and services would rise.";
xBookUtils.showAnswers['krugmanwellsmodulesmacro3-s13m44-cyu-2a'] = "The real exchange rate equals pesos per U.S. dollar × aggregate price level in the U.S./aggregate price level in Mexico. Today, the aggregate price level in both countries is 100. The real exchange rate today is: 10 × (100/100) = 10. The aggregate price level in five years in the U.S. will be 100 × (120/100) = 120, and in Mexico it will be 100 × (1,200/800) = 150. Thus, the real exchange rate in five years, assuming the nominal exchange rate does not change, will be 10 × (120/150) = 8.";
xBookUtils.showAnswers['krugmanwellsmodulesmacro3-s13m44-cyu-2b'] = "Today, a basket of goods and services that costs $100 costs 800 pesos, so the purchasing power parity is 8 pesos per U.S. dollar. In five years, a basket that costs $120 will cost 1,200 pesos, so the purchasing power parity will be 10 pesos per U.S. dollar.";
xBookUtils.showAnswers['krugmanwellsmodulesmacro3-s13m44-ct-1'] = "In order to purchase more imports from Europe, U.S. consumers must supply more dollars in exchange for euros. As shown in the diagram, the increase in the supply of dollars shifts the dollar supply curve to the right and decreases the exchange rate from XR1 to XR2.
";
xBookUtils.showAnswers['krugmanwellsmodulesmacro3-s13m45-cyu-1a'] = "If the exchange rate were allowed to float more freely, the U.S. dollar price of the exchange rate would move toward the equilibrium exchange rate (labeled XR* in the accompanying diagram). This would occur as a result of the shortage, when buyers of the yuan would bid up its U.S. dollar price. As the exchange rate increased, the quantity of yuan demanded would fall and the quantity of yuan supplied would increase. If the exchange rate were allowed to increase to XR*, the disequilibrium would be entirely eliminated.
";
xBookUtils.showAnswers['krugmanwellsmodulesmacro3-s13m45-cyu-1b'] = "Placing restrictions on foreigners who want to invest in China would reduce the demand for the yuan, causing the demand curve to shift in the accompanying diagram from D1 to something like D2. This would cause a reduction in the shortage of the yuan. If demand fell to D3, the disequilibrium would be completely eliminated.
";
xBookUtils.showAnswers['krugmanwellsmodulesmacro3-s13m45-cyu-1c'] = "Removing restrictions on Chinese who wish to invest abroad would cause an increase in the supply of the yuan and a rightward shift of the supply curve. This increase in supply would reduce the size of the shortage. If, for example, supply increased from S1 to S2, the disequilibrium would be eliminated completely, as shown in the accompanying diagram.
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