Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 13

Suppose that in the United States last season's hot holiday gift was the iPad (which is made primarily in China) while this season's big gift is media content for the iPad (which is made in the U.S.). Determine whether there will be an increase, decrease, or no change for each of the following variables compared to last year.
a. Supply and demand for dollars.
b. Exchange rate between the U.S. and China.
c. Net exports for the U.S.
d. Net capital outflows for the U.S.