on the foreign exchange market, an increase in a country’s exchange rate A. Decrease the quantity...
on the foreign exchange market, an increase in a country’s exchange rate
A. Decrease the quantity demand of its currency
B. Increase the quantity demand of its currency
C. Has no effect on the quantity demand of its currency
D. Decrease the quantity supplied of its currency
E. has no effect of the quantity supplied of its currency
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Homework Answers
A higher rate will decrease the demand of the domestic currency,because the value of domestic currency appreciates.
Answer-A
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on the foreign exchange market, an increase in a country’s
exchange rate
A. Decrease the quantity...
Questions 3-5 correspond with the US Market for Foreign Exchange with Japan, where the price of...
Questions 3-5 correspond with the US Market for Foreign Exchange with Japan, where the price of $ foreign exchange is dollars divided by yen (i.e.), and quantity is the quantity of yen. 3. In the U.S. market for foreign exchange with Japan, how is this market affected by an increase in exports (i.e. US exports to Japan)? a. increase in the demand for foreign exchange b. decrease in the demand for foreign exchange c. increase in the supply of foreign...
2. Foreign exchange rate quotations An exchange rate is the price of one country’s currency expressed...
2. Foreign exchange rate quotations An exchange rate is the price of one country’s currency expressed in another country’s currency. The exchange rates of the euro (€ ) and the Japanese yen (¥) relative to the U.S. dollar ($) are listed as follows: Spot Rate Euro € 0.6589 / $1 Yen ¥ 105.7800 / $1 When exchange rates are stated in 1.(European/American) terms, the foreign exchange rate represents the number of American dollars that can be purchased with one...
Uni ule government allows the exchange rate to float. a. Lump-sum taxes increase. b. Foreign income...
Uni ule government allows the exchange rate to float. a. Lump-sum taxes increase. b. Foreign income increases. c. Investors expect an appreciation of the home currency. d. The money supply decreases. 2. For each of the following scenarios, assume the economy experiences an exogenous decrease in investment demand. For each case, illustrate the IS-LM-FX diagram and state the effect of the shock (increase, decrease, no change, or ambiguous) on the following variables: Y, i, E, C, I, TB. Here, we...
answer these 4 . will rate after The exchange rate for a foreign currency that is...
answer these 4 . will rate after
The exchange rate for a foreign currency that is determined by supply and demand is O a constrained exchange rate. O a floating exchange rate. O a fixed exchange rate. O a controlled exchange rate. in bank An open-market purchase of government bonds by the Fed results in reserves and in the supply of money. O an increase; a decrease O a decrease; a decrease O an increase; an increase O a decrease;...
1a. In the foreign exchange market, a decrease in the world demand for Japanese exports a....
1a. In the foreign exchange market, a decrease in the world demand for Japanese exports a. shifts the demand curve for yen leftward, which causes the yen to appreciate. b. shifts the demand curve for yen rightward, which causes the yen to appreciate. c. shifts the demand curve for yen rightward, which causes the yen to depreciate. d. shifts the demand curve for yen leftward, which causes the yen to depreciate. 1b. A relatively high rate of inflation in the...
Everything else the same, if the price level in Japan rises relative to the price level...
Everything else the same, if the price level in Japan rises relative to the price level in the U.S., a. the supply of dollars and the demand for yen in the foreign exchange market will decrease. b. the supply of dollars and the demand for yen in the foreign exchange market will increase. c. the demand for dollars and the supply of yen in the foreign exchange market will decrease. d. the yen will appreciate. e. the dollar will depreciate....
Any increase in the demand for foreign exchange, other things constant, will O increase the number...
Any increase in the demand for foreign exchange, other things constant, will O increase the number of dollars required to purchase one unit of foreign exchange. o decrease the number of dollars required to purchase one unit of foreign exchange. O cause the dollar to appreciate. O cause the foreign currency to depreciate. O have no effect.
The foreign exchange rate is defined as the Question 64 Not yet answered Points out of...
The foreign exchange rate is defined as the Question 64 Not yet answered Points out of 100 Remove flag Select one: © A. volume of the world currencies traded. B. equal to the amount of the current account deficit. C. equal to the amount of the capital account deficit. D. rate or the speed with which the currencies of the worlds are traded. E.price at which one currency exchanges for another. Other things remaining the same, as U.S. imports increase...
The graph below shows demand and supply curves for U.S. dollars in the foreign exchange market. As...
The graph below shows demand and
supply curves for U.S. dollars in the foreign exchange
market. As you can see, the exchange rate (in terms of
foreign currency units per dollar) is initially equal to
E0.
Suppose that next year there’s
a huge increase in the number of foreigners – from Europe, China,
and everywhere else – who decide to visit the U.S. as
tourists.
How would this huge increase in tourism in the U.S. affect the
exchange rate? To answer this,...
2. Foreign exchange rate quotations An exchange rate is the price of one country’s currency expressed...
2. Foreign exchange rate quotations An exchange rate is the price of one country’s currency expressed in another country’s currency. 1. Suppose an American investor is given the current exchange rates in the following table. The listed quotations are _1.__(direct/ Indirect)___ quotations stated in American terms. Exchange Rate British pound (£) $1.8790 / pound Euro (€ ) $1.3210 / euro Australian dollar (AU$) $0.8970 / Australian dollar 2.Given these rates, an Australian dollar can purchase__2.(__)___ British pounds. 3. Green...
Questions 3-5 correspond with the US Market for Foreign Exchange with Japan, where the price of $ foreign exchange is dollars divided by yen (i.e.), and quantity is the quantity of yen. 3. In the U.S. market for foreign exchange with Japan, how is this market affected by an increase in exports (i.e. US exports to Japan)? a. increase in the demand for foreign exchange b. decrease in the demand for foreign exchange c. increase in the supply of foreign...
Uni ule government allows the exchange rate to float. a. Lump-sum taxes increase. b. Foreign income increases. c. Investors expect an appreciation of the home currency. d. The money supply decreases. 2. For each of the following scenarios, assume the economy experiences an exogenous decrease in investment demand. For each case, illustrate the IS-LM-FX diagram and state the effect of the shock (increase, decrease, no change, or ambiguous) on the following variables: Y, i, E, C, I, TB. Here, we...
answer these 4 . will rate after
The exchange rate for a foreign currency that is determined by supply and demand is O a constrained exchange rate. O a floating exchange rate. O a fixed exchange rate. O a controlled exchange rate. in bank An open-market purchase of government bonds by the Fed results in reserves and in the supply of money. O an increase; a decrease O a decrease; a decrease O an increase; an increase O a decrease;...
Any increase in the demand for foreign exchange, other things constant, will O increase the number of dollars required to purchase one unit of foreign exchange. o decrease the number of dollars required to purchase one unit of foreign exchange. O cause the dollar to appreciate. O cause the foreign currency to depreciate. O have no effect.
The foreign exchange rate is defined as the Question 64 Not yet answered Points out of 100 Remove flag Select one: © A. volume of the world currencies traded. B. equal to the amount of the current account deficit. C. equal to the amount of the capital account deficit. D. rate or the speed with which the currencies of the worlds are traded. E.price at which one currency exchanges for another. Other things remaining the same, as U.S. imports increase...
The graph below shows demand and
supply curves for U.S. dollars in the foreign exchange
market. As you can see, the exchange rate (in terms of
foreign currency units per dollar) is initially equal to
E0.
Suppose that next year there’s
a huge increase in the number of foreigners – from Europe, China,
and everywhere else – who decide to visit the U.S. as
tourists.
How would this huge increase in tourism in the U.S. affect the
exchange rate? To answer this,...
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