Homework Answers
1 - foreign agents increase their interest in domestic investment
2 - foreign agents increase their demand for DC to trade
3 - DC appreciates
4 - Relative price of exports increases
5 - foreign interest in X decreases
6 - foreign agents decrease their demand for DC to trade
7 - DC depreciates
8 - fx re-equilibriates to new level
Add Answer to:
QUESTION 1 Following a report of additional economic growth in country A (the domestic currency), the...
Following a report of additional economic growth in country A (the domestic currency), the balance of...
Following a report of additional economic growth in country A (the domestic currency), the balance of payments re-equilibration occurs in which order? - The DC depreciates - The fx re-equilibrates to new level - Foreign agents decrease their demand for the domestic currency (DC) to invest - Foreign agents increase their interest in domestic investment (DI) Foreign agents increase their demand for the domestic currency (DC) to invest - The DC appreciates - The foreign interest in DI decreases -...
QUESTION 3 Select all of the following that are true regarding interest rates and foreign exchange...
QUESTION 3 Select all of the following that are true regarding interest rates and foreign exchange rates: When domestic interest rates rise the domestic currency depreciates When a domestic currency depreciates, domestic interest rates rise Interest rate parity between countries is a reasonable assumption due to arbitrage and floating exchange rates When domestic interest rates rise due to monetary policy, the domestic currency appreciates solely because of the decreased supply of the domestic currency QUESTION 4 Select all that are...
QUESTION 7 Select all that are true given an increase in exports from the domestic economy:...
QUESTION 7 Select all that are true given an increase in exports from the domestic economy: Domestic economic growth slows The relative price of exports falls Investment from the domestic economy to the foreign economies decreases The domestic currency depreciates QUESTION 8 The current account moves in to surplus, select all of the following that might result: The home price of goods increases Assuming no change in foreign reserves, the domestic interest rate rises Demand for DC increases Output increases
(1) If the world price is above the domestic equilibrium price, the domestic country is likely...
(1)
If the world price is above the domestic equilibrium price, the
domestic country is likely to ____________________ the good.
(2)
The difference between what an economy sells to and buys from
foreigners is _________________.
(3)
The idea that exchange rates and prices adjust to equalize the
cost of living across international boundaries is called
__________________________.
(4)
In the graph below, when the world price is $3, how many units
are...
QUESTION 1 10 points Save Answer Select all that are true given an increase in domestic...
QUESTION 1 10 points Save Answer Select all that are true given an increase in domestic interest rates: It indicates investment flowing out of the loanable funds market, ceteris paribus It will attract foreign investment into the domestic economy, mitigating the increase It indicates a growing domestic economy The thickly and freely traded currency spot markets will restore interest rate parity between countries QUESTION 2 10 points Save Answer Select all of the following that are true regarding interest rates...
QUESTION 1 Select all that are true given an acceleration of economic growth in the Brazilian...
QUESTION 1 Select all that are true given an acceleration of economic growth in the Brazilian economy: Long term investors would invest in the Brazilian economy, but only if the structural aspects of its economy support it Monetary policy, in reaction to the unexpected growth, would decreases the money supply, appreciating the domestic currency The domestic interest rate would increase until new domestic investment and the carry trade mitigate it The domestic currency (Real) would appreciate as foreign investors seek...
(16) When interest rates in the U.S. increase, the supply of dollars ________ and the demand...
(16)
When interest rates in the U.S. increase, the supply of dollars
________ and the demand for dollars ________.
decreases; increases
increases; decreases
increases; increases
decreases; decreases
(17)
The World Trade Organization
was established as part of the
Bretton Woods agreement.
requires members to charge the
same prices on goods traded internationally.
requires members to reduce
tariffs and eliminate non-tariff barriers.
is made up of business leaders
from all over the world.
(18)
If...
Unfair Trade A global recession has hit and you are the economic advisor to a country...
Unfair Trade A global recession has hit and you are the economic advisor to a country with a struggling economy and rising unemployment. Your country has a long history of trading with different nations, but due to the recession, labor and business groups are becoming ever more rabid in their pleas for the government to strengthen and enforce trade restrictions. The labor groups argue that too many businesses are trying to cut costs by replacing domestic workers with cheaper foreign...
QUESTION 1 10 points Save Answer Select all of the following that are true regarding interest...
QUESTION 1 10 points Save Answer Select all of the following that are true regarding interest rates and foreign exchange rates, ceteris paribus When domestic interest rates rise due to monetary policy, the domestic currency appreciates solely because of the decreased supply of the domestic currency When a domestic currency depreciates, domestic interest rates rise When domestic interest rates rise the domestic currency depreciates Interest rate parity between countries is a reasonable assumption due to arbitrage and floating exchange rates...
Answer the following questions. 1. All else equal, a currency depreciation in the home nation would...
Answer the following questions. 1. All else equal, a currency depreciation in the home nation would cause what response? A) Consumers in the home nation would find it more expensive to buy domestic goods compared to foreign goods, and the trade balance would decrease. B) Consumers in the home nation would cut back on both domestic and foreign goods and the trade balance would decrease. C) Consumers in the home nation would increase spending on both domestic and foreign goods,...
Following a report of additional economic growth in country A (the domestic currency), the balance of payments re-equilibration occurs in which order? - The DC depreciates - The fx re-equilibrates to new level - Foreign agents decrease their demand for the domestic currency (DC) to invest - Foreign agents increase their interest in domestic investment (DI) Foreign agents increase their demand for the domestic currency (DC) to invest - The DC appreciates - The foreign interest in DI decreases -...
QUESTION 3 Select all of the following that are true regarding interest rates and foreign exchange rates: When domestic interest rates rise the domestic currency depreciates When a domestic currency depreciates, domestic interest rates rise Interest rate parity between countries is a reasonable assumption due to arbitrage and floating exchange rates When domestic interest rates rise due to monetary policy, the domestic currency appreciates solely because of the decreased supply of the domestic currency QUESTION 4 Select all that are...
QUESTION 7 Select all that are true given an increase in exports from the domestic economy: Domestic economic growth slows The relative price of exports falls Investment from the domestic economy to the foreign economies decreases The domestic currency depreciates QUESTION 8 The current account moves in to surplus, select all of the following that might result: The home price of goods increases Assuming no change in foreign reserves, the domestic interest rate rises Demand for DC increases Output increases
(1)
If the world price is above the domestic equilibrium price, the
domestic country is likely to ____________________ the good.
(2)
The difference between what an economy sells to and buys from
foreigners is _________________.
(3)
The idea that exchange rates and prices adjust to equalize the
cost of living across international boundaries is called
__________________________.
(4)
In the graph below, when the world price is $3, how many units
are...
QUESTION 1 10 points Save Answer Select all that are true given an increase in domestic interest rates: It indicates investment flowing out of the loanable funds market, ceteris paribus It will attract foreign investment into the domestic economy, mitigating the increase It indicates a growing domestic economy The thickly and freely traded currency spot markets will restore interest rate parity between countries QUESTION 2 10 points Save Answer Select all of the following that are true regarding interest rates...
QUESTION 1 Select all that are true given an acceleration of economic growth in the Brazilian economy: Long term investors would invest in the Brazilian economy, but only if the structural aspects of its economy support it Monetary policy, in reaction to the unexpected growth, would decreases the money supply, appreciating the domestic currency The domestic interest rate would increase until new domestic investment and the carry trade mitigate it The domestic currency (Real) would appreciate as foreign investors seek...
(16)
When interest rates in the U.S. increase, the supply of dollars
________ and the demand for dollars ________.
decreases; increases
increases; decreases
increases; increases
decreases; decreases
(17)
The World Trade Organization
was established as part of the
Bretton Woods agreement.
requires members to charge the
same prices on goods traded internationally.
requires members to reduce
tariffs and eliminate non-tariff barriers.
is made up of business leaders
from all over the world.
(18)
If...
Unfair Trade A global recession has hit and you are the economic advisor to a country with a struggling economy and rising unemployment. Your country has a long history of trading with different nations, but due to the recession, labor and business groups are becoming ever more rabid in their pleas for the government to strengthen and enforce trade restrictions. The labor groups argue that too many businesses are trying to cut costs by replacing domestic workers with cheaper foreign...
QUESTION 1 10 points Save Answer Select all of the following that are true regarding interest rates and foreign exchange rates, ceteris paribus When domestic interest rates rise due to monetary policy, the domestic currency appreciates solely because of the decreased supply of the domestic currency When a domestic currency depreciates, domestic interest rates rise When domestic interest rates rise the domestic currency depreciates Interest rate parity between countries is a reasonable assumption due to arbitrage and floating exchange rates...
Most questions answered within 3 hours.
-
Consider the quantum number sets listed below.
What is the name of the smallest element for...
asked 10 minutes ago -
In python,write a function nameSet(first, last) that takes a
person's first and last names as input,...
asked 2 hours ago -
How do you think we should value management? Specifically how
might we try to determine MRPL...
asked 2 hours ago -
Suppose the Central Bank of Turkey starts to pay
interest on reserves. Under what circumstances this...
asked 2 hours ago -
For Bergson the concept of Being contains less reality than does
the concept of Becoming. True...
asked 3 hours ago -
What is the hydroxide ion concentration, [OH-], in a solution
with a hydronium ion concentration, [H3O+]...
asked 3 hours ago -
What species is the reducing agent in the following
equation?
Mg(s) + 2HCl (aq) --> MgCl2(aq)...
asked 3 hours ago -
A 50g ice cube is taken out of a freezer at 0 degrees Celsius
and put...
asked 5 hours ago -
How do ratios help you determine trends? What specific
information do managers look at? Is there...
asked 5 hours ago -
A wavelength of 514 nm is used to find an unknown diffraction
grating. If the separation...
asked 5 hours ago -
Use the central limit theorem to find the mean and standard
error of the mean of...
asked 5 hours ago -
You will be given a file that will contain averages for classes
which are divided into...
asked 5 hours ago