申論題

8. You note that over the last five years, the exchange rate of New Taiwan dollar per U.S. dollar has been from 32.9825 on January 1, 2016 to 28.48 on December 31, 2020. During 2016 - 2020, Taiwan's consumer price index rose from 100 to 102.3 and the US consumer price index rose from 100 to 108.

(a) On the basis of these movements, would you expect the U.S. to be buying more or less Taiwan goods? Why? (5%)