A reduction in 12. the real
exchange rate indicates that Group of answer choices foreign goods
are now relatively cheaper. foreign goods are now relatively more
expensive. domestic goods are now relatively more expensive. both A
and C
Homework Answers
Ans.-(B)
A reduction in the real exchange rate indicates that foreign goods have become more expensive whereas domestic goods have become cheaper. An increase in the real exchange rate indicates that domestic goods are now relatively more expensive and foreign goods are now relatively cheaper.
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A reduction in 12. the real
exchange rate indicates that Group of answer choices foreign goods...
4. Assume that the nominal exchange rate increases by 2%. If prices (both domestic and foreign...
4. Assume that the nominal exchange rate increases by 2%. If prices (both domestic and foreign do not change), we know that domestic goods are relatively. _(cheaper / more expensive) and that foreign goods are relatively _(cheaper / more expensive).
2. Which of the following best defines the real exchange rate? Group of answer choices the...
2. Which of the following best
defines the real exchange rate? Group of answer choices the price
of foreign bonds in terms of domestic bonds the price of foreign
currency in terms of domestic currency the price of domestic goods
in terms of foreign goods the price of domestic currency in terms
of foreign currency
Question 2 Which of the following best defines the real exchange rate? O the price of foreign bonds in terms of domestic bonds O the...
Question 5 When the real exchange rate appreciates, domestic goods become less expensive relative to foreign...
Question 5 When the real exchange rate appreciates, domestic goods become less expensive relative to foreign goods. A. True B. False Question 6 A Honda SUV sells for $50,000 in the U.S. and 200,000 rubles in Russia. If purchasing-power parity holds, what is the nominal exchange rate (rubles per dollar)?
Suppose the real exchange rate is 10, the domestic price level is 8, and the foreign...
Suppose the real exchange rate is 10, the domestic price level is 8, and the foreign price level is 4. What is the nominal exchange rate? (3%) a. Suppose the real exchange rate rises by 10%, the inflation rate in the domestic b. country is 6%, and the inflation rate in the foreign country is 4%. By what percentage does the nominal exchange rate change? (3%) Suppose the nominal exchange rate rises by 5%, the real exchange rate rises by...
One source of the supply of dollars in the foreign exchange rate market is Group of...
One source of the supply of dollars in the foreign exchange rate market is Group of answer choices the sale of U.S. domestic financial assets to foreigners. imports of merchandise into the United States. gold sold to foreigners. the purchase of U.S. exports.
answer these 4 . will rate after A reduction in the British interest rate relative to...
answer these 4 . will rate after
A reduction in the British interest rate relative to the U.S. interest rate will cause a(n): appreciation of the dollar and an appreciation of the British pound. O appreciation of the dollar and a depreciation of the British pound. depreciation of the dollar and an appreciation of the British pound. O depreciation of the dollar and a depreciation of the British pound. A decrease in preference for Japanese automobiles, all else the same,...
What happens to the real exchange rate and net exports in each of the following cases?...
What happens to the real exchange rate and net exports in each of the following cases? a. The world interest rate rises (r*) b. expansionary fiscal policy at home i.e. domestic output rises c. Foreign demand for domestic goods falls as result of contraction fiscal policy at abroad d. Import restrictions i.e. quota or tariffs on foreign goods e. The domestic prices rise more than foreign prices f. nominal exchange rate e falls
The exchange rate for a foreign currency that is determined by supply and demand is Group...
The exchange rate for a foreign currency that is determined by supply and demand is Group of answer choices a constrained exchange rate. a floating exchange rate. a fixed exchange rate. a controlled exchange rate.
Define the nominal exchange rate as the foreign price of domestic currency, e.g. the amount of...
Define the nominal exchange rate as the foreign price of domestic currency, e.g. the amount of Yen per dollar. When the interest parity condition holds, we know that the domestic interest rate must be equal to: Group of answer choices the foreign interest rate minus the expected rate of appreciation of the domestic currency. the expected rate of appreciation of the domestic currency. the foreign interest rate. the expected rate of depreciation of the domestic currency. the foreign interest rate...
Question 13 (1 point) Saved Which of the following would cause a reduction in exports? O 1) an increase in foreign outp...
Question 13 (1 point) Saved Which of the following would cause a reduction in exports? O 1) an increase in foreign output 2) a real depreciation of the domestic exchange rate O 3) a decrease in domestic output 4) a real appreciation of the domestic exchange rate 5) an increase in domestic output
4. Assume that the nominal exchange rate increases by 2%. If prices (both domestic and foreign do not change), we know that domestic goods are relatively. _(cheaper / more expensive) and that foreign goods are relatively _(cheaper / more expensive).
2. Which of the following best
defines the real exchange rate? Group of answer choices the price
of foreign bonds in terms of domestic bonds the price of foreign
currency in terms of domestic currency the price of domestic goods
in terms of foreign goods the price of domestic currency in terms
of foreign currency
Question 2 Which of the following best defines the real exchange rate? O the price of foreign bonds in terms of domestic bonds O the...
Suppose the real exchange rate is 10, the domestic price level is 8, and the foreign price level is 4. What is the nominal exchange rate? (3%) a. Suppose the real exchange rate rises by 10%, the inflation rate in the domestic b. country is 6%, and the inflation rate in the foreign country is 4%. By what percentage does the nominal exchange rate change? (3%) Suppose the nominal exchange rate rises by 5%, the real exchange rate rises by...
answer these 4 . will rate after
A reduction in the British interest rate relative to the U.S. interest rate will cause a(n): appreciation of the dollar and an appreciation of the British pound. O appreciation of the dollar and a depreciation of the British pound. depreciation of the dollar and an appreciation of the British pound. O depreciation of the dollar and a depreciation of the British pound. A decrease in preference for Japanese automobiles, all else the same,...
Question 13 (1 point) Saved Which of the following would cause a reduction in exports? O 1) an increase in foreign output 2) a real depreciation of the domestic exchange rate O 3) a decrease in domestic output 4) a real appreciation of the domestic exchange rate 5) an increase in domestic output
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