Question

(11)
How is it possible for a country to import more goods than it exports? The government can subsidize imports. The government can subsidize exports. Foreigners can lend the country money. Private domestic banks can lend the country money.
(12)
The nominal foreign exchange rate is the value of foreign goods in the domestic currency. the value of domestic goods in the foreign currency.the rate at which one currency is traded for another. the difference between what a good costs in the domestic currency and the foreign currency.
(13)
If the value of the dollar depreciates, we would expect that more dollars would be needed to purchase a unit of foreign currency.that fewer dollars would be needed to purchase a unit of foreign currency. banks to be less willing to sell dollars than they were before the depreciation. banks to be more willing to sell dollars than they were before the depreciation.
(14)
Suppose a bottle of French wine costs 70 francs. If the exchange rate moves from 6 francs / dollar to 7 francs / dollar, how much does the price of the wine change measured in dollars?The price rises from $10 to $11.66.The price falls from $11.66 to $10.The price remains unchanged because the price in French francs is constant. The change in price depends on how strong the dollar is.
(15)
The real exchange rate shows the amount of foreign currency needed to purchase domestic goods. the amount of domestic currency needed to purchase foreign goods.the rate at which foreign exchange can be purchased.the rate at which goods and services in one country can be converted into goods and services in another country.

Answer 1

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