Homework Answers
A. The alda has appreciated in nominal terms.
Reason :- initially, when the exchange rate was 10 aldas / 1 bordo, we needed 10 aldas to buy 1 bordo. Later, the exchange rate decreased. Now we needed 8 aldas to buy 1 bordo. This shows an appreciation in aldas and depreciation in bordo.
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One can exchange the currencies of Aldaria and Borduria at the rate 10 aldas/1 bordo. The...
lgnore the previous questions. One can exchange the currencies of Aldaria and Borduria at the rate...
lgnore the previous questions. One can exchange the currencies of Aldaria and Borduria at the rate 10 aldas/1 bordo. The price level in Aldaria is 50, while in Borduria the price level is 80. Suppose it now takes 8 aldas to buy 1 bordo, and the price level in Borduria has risen to 100, with everything else unchanged. Which of the following statements is correct? A. The bordo has depreciated in real terms. B. The alda has depreciated in real...
lgnore the previous questions. One can exchange the currencies of Aldaria and Borduria at the rate...
lgnore the previous questions. One can exchange the currencies of Aldaria and Borduria at the rate 10 aldas/1 bordo. The price level in Aldaria is 50, while in Borduria the price level is 80. Suppose it now takes 8 aldas to buy 1 bordo and the price level in Aldaria increases by 10%, with everything else unchanged. Which of the following statements is correct? A. The alda has depreciated in real terms. B.The bordo has appreciated in nominal terms. C....
Ignore the previous questions. One can exchange the currencies of Aldaria and Borduria at the rate...
Ignore the previous questions. One can exchange the currencies of Aldaria and Borduria at the rate 10 aldas/1 bordo. The price level in Aldaria is 50, while in Borduria the price level is 80. Suppose it now takes 9 aldas to buy 1 bordo, the price level in Aldaria is unchanged, and the price level in Borduria has increased by 12.5 percent. Which of the following statements is correct? A. The alda has depreciated in nominal terms, and also depreciated...
Ignore the previous questions. One can exchange the currencies of Aldaria and Borduria at the rate...
Ignore the previous questions. One can exchange the currencies of Aldaria and Borduria at the rate 10 aldas/1 bordo. The price level in Aldaria is 50, while in Borduria the price level is 80. Suppose it now takes 11 aldas to buy 1 bordo, the price level in Aldaria increases by 20%, and the price level in Borduria increases by 10%. Which of the following statements is correct? O A. None of the choices is correct. OB. The alda has...
Ignore the previous questions. One can exchange the currencies of Aldaria and Borduria at the rate...
Ignore the previous questions. One can exchange the currencies of Aldaria and Borduria at the rate 10 aldas/1 bordo. The price level in Aldaria is 50, while in Borduria the price level is 80. Suppose the price level in Aldaria increases by 10%, while in Borduria the price level increases by 20%. Which of the following statements is correct? O A. The bordo has depreciated in real terms. OB. The alda has appreciated in real terms. OC. The alda has...
Tuesday Feb 18 Que Name Problem Set 7 Econ 2301 1. If the exchange rate between...
Tuesday Feb 18 Que Name Problem Set 7 Econ 2301 1. If the exchange rate between the U.S. and Mexico (let's look at price of one dollar in Mexican pesos) changes from 12 pesos - $1 to 18 pesos = $1 (as happened between about 2013 and spring 2016, a. the dollar has appreciated in value b. the peso has deprecated in value c. the dollar has depreciated in value d. the peso has appreciated in value e. a and...
Due Tuesday Problem Set 7 Econ 2301 Feb 18 Name 1. If the exchange rate between...
Due Tuesday Problem Set 7 Econ 2301 Feb 18 Name 1. If the exchange rate between the US and Mexico let's look at price of one dollar in Mexican pesos) changes from 12 pesos = $1 to 18 pesos = $1 (as happened between about 2013 and spring 2016), a. the dollar has appreciated in value b. the peso has depreciated in value c. the dollar has depreciated in value d. the peso has appreciated in value e. a and...
3. Questions and Problems 3 When the equilibrium exchange rate rises from, say, 10 cents for one Mexican peso to 12 cents for one Mexican peso, Americans must now pay 8,90,12,10 to buy one peso. It i...
3. Questions and Problems 3 When the equilibrium exchange rate rises from, say, 10 cents for one Mexican peso to 12 cents for one Mexican peso, Americans must now pay 8,90,12,10 to buy one peso. It is said that the dollar has depreciated in relation to the Mexican peso. At the same time, the peso has depreciated in relation to the U.S. dollar, as it now takes appreciated instead of to buy one dollar. 8.33,T00,9.83,10 10, 9.83,8.33,100 pesos Grade It...
1) If the exchange rate changes from $1 acquire 140 Euro to $1 acquires 80 Euro,...
1) If the exchange rate changes from $1 acquire 140 Euro to $1 acquires 80 Euro, the Euro is said to have: A)appreciated B)depreciated C) drifted D)none of the above 2) Selling a stock you do not own with the expectation you can buy it at a lower price in a few days is referred to as : A) a long position B) a capital gain C) a short sale D) a day trade 3) A market maker working on...
1) The price of one currency in terms of another is called A)...
1) The price of one currency in terms of another is called A) the exchange rate. B) purchasing power parity. C) the terms of trade. D) a currency band. 2) The three policies which cannot be maintained simultaneously by a nation (sometimes referred to as the "trilemma") do NOT include A) independent control of the money supply. B) independent control of fiscal policy. C) free flow of capital. D) fixed exchange rates 3) The foreign exchange rate refers to A) the rate of change in...
lgnore the previous questions. One can exchange the currencies of Aldaria and Borduria at the rate 10 aldas/1 bordo. The price level in Aldaria is 50, while in Borduria the price level is 80. Suppose it now takes 8 aldas to buy 1 bordo, and the price level in Borduria has risen to 100, with everything else unchanged. Which of the following statements is correct? A. The bordo has depreciated in real terms. B. The alda has depreciated in real...
lgnore the previous questions. One can exchange the currencies of Aldaria and Borduria at the rate 10 aldas/1 bordo. The price level in Aldaria is 50, while in Borduria the price level is 80. Suppose it now takes 8 aldas to buy 1 bordo and the price level in Aldaria increases by 10%, with everything else unchanged. Which of the following statements is correct? A. The alda has depreciated in real terms. B.The bordo has appreciated in nominal terms. C....
Ignore the previous questions. One can exchange the currencies of Aldaria and Borduria at the rate 10 aldas/1 bordo. The price level in Aldaria is 50, while in Borduria the price level is 80. Suppose it now takes 9 aldas to buy 1 bordo, the price level in Aldaria is unchanged, and the price level in Borduria has increased by 12.5 percent. Which of the following statements is correct? A. The alda has depreciated in nominal terms, and also depreciated...
Ignore the previous questions. One can exchange the currencies of Aldaria and Borduria at the rate 10 aldas/1 bordo. The price level in Aldaria is 50, while in Borduria the price level is 80. Suppose it now takes 11 aldas to buy 1 bordo, the price level in Aldaria increases by 20%, and the price level in Borduria increases by 10%. Which of the following statements is correct? O A. None of the choices is correct. OB. The alda has...
Ignore the previous questions. One can exchange the currencies of Aldaria and Borduria at the rate 10 aldas/1 bordo. The price level in Aldaria is 50, while in Borduria the price level is 80. Suppose the price level in Aldaria increases by 10%, while in Borduria the price level increases by 20%. Which of the following statements is correct? O A. The bordo has depreciated in real terms. OB. The alda has appreciated in real terms. OC. The alda has...
Tuesday Feb 18 Que Name Problem Set 7 Econ 2301 1. If the exchange rate between the U.S. and Mexico (let's look at price of one dollar in Mexican pesos) changes from 12 pesos - $1 to 18 pesos = $1 (as happened between about 2013 and spring 2016, a. the dollar has appreciated in value b. the peso has deprecated in value c. the dollar has depreciated in value d. the peso has appreciated in value e. a and...
Due Tuesday Problem Set 7 Econ 2301 Feb 18 Name 1. If the exchange rate between the US and Mexico let's look at price of one dollar in Mexican pesos) changes from 12 pesos = $1 to 18 pesos = $1 (as happened between about 2013 and spring 2016), a. the dollar has appreciated in value b. the peso has depreciated in value c. the dollar has depreciated in value d. the peso has appreciated in value e. a and...
3. Questions and Problems 3 When the equilibrium exchange rate rises from, say, 10 cents for one Mexican peso to 12 cents for one Mexican peso, Americans must now pay 8,90,12,10 to buy one peso. It is said that the dollar has depreciated in relation to the Mexican peso. At the same time, the peso has depreciated in relation to the U.S. dollar, as it now takes appreciated instead of to buy one dollar. 8.33,T00,9.83,10 10, 9.83,8.33,100 pesos Grade It...
1) If the exchange rate changes from $1 acquire 140 Euro to $1 acquires 80 Euro, the Euro is said to have: A)appreciated B)depreciated C) drifted D)none of the above 2) Selling a stock you do not own with the expectation you can buy it at a lower price in a few days is referred to as : A) a long position B) a capital gain C) a short sale D) a day trade 3) A market maker working on...
1) The price of one currency in terms of another is called A) the exchange rate. B) purchasing power parity. C) the terms of trade. D) a currency band. 2) The three policies which cannot be maintained simultaneously by a nation (sometimes referred to as the "trilemma") do NOT include A) independent control of the money supply. B) independent control of fiscal policy. C) free flow of capital. D) fixed exchange rates 3) The foreign exchange rate refers to A) the rate of change in...
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