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1. Go to the following website at the US International Trade Commission to review the anti-dumping laws, http://www.usitc.gov/trade_remedy/731_ad_701_cvd/index.htm . Take the time to look at one of the investigations. Describe the pros and cons of anti-dumping laws on the US economy. (4pts)
Investigation: Kitchen Appliance Shelving and Racks from China
Pros:
Government would protect domestic industry from unfair competition.
Less unemployment.
Cons:
Tariffs would raise the price for imported goods, even the one with “fair” price.
Domestic industry may be inefficient in production of those goods.
2.On April 9, 2007 the exchange rate for US dollars to Japanese Yen was US$1=Y119. On April 9, 2008 the exchange rate was US$1=Y102. What has happened to the value of the US dollar relative to the value of the yen over the last year? (appreciated, depreciated, unchanged?) (2pts) USD depreciated against JPY, it cost less in 2008 than in 2007
a. What is the effect on the price of products (to the US) that the US imports from Japan? (2pts)
Increase

b. What is the effect on the price of products (to the Japanese) that the US exports to Japan? (2pts)
Decrease

3. Name a monetary policy that the US could use to further stimulate an already, slowing economy. (2 pts)
Currency Intervention. Such intervention may increase export (domestic production) and decrease import.
a. Using supply and demand, demonstrate the theoretical effect of the policy on the exchange rate with the euro. (Please put US$ on the horizontal axis and euros/dollar (euros per dollar) as the price on the vertical axis. Show the effect of the expansionary monetary policy on the exchange rate. (4 pts)
If government increases supply of US dollars, this would decrease exchange rate between euro and dollars. Fewer euros would need to buy a dollar.
Rate falls from P1 to P2

b. What is the

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