Question

Intertemporal trade allows economies to: a) always have a trade surplus. b) smooth risk over time. c) run trade deficits for all periods. d) None of these answers is correct. e) reduce consumption over time.

Answer 1

Solution :- (1)

The Correct Answer is (b) that is Smooth Risk Over time

Intertemporal trade allows economies to Smooth risk over time.

Solution :- (2)

In 2011

1 Euro = $1.393

1 $ = 79.700 Yen

Now

Yen per Euro = ( Yen / US $ ) * ( US $ / Euro )

Yen per Euro = 79.700 * 1.393 = 111.0221

Therefore 1 Euro = Yen 111.0221

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