An increase in U.S. money supply, under flexible exchange rate system, will result in: Question 3...
An increase in U.S. money supply, under flexible exchange rate system, will result in:
Question 3 options:
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a depreciation of the pound and a depreciation of the dollar |
|
|
a depreciation of the pound and an appreciation of the dollar |
|
|
an appreciation of the pound and a depreciation of the dollar |
|
|
exchange rate has no relation to government spending |
Homework Answers
An increase in the U.S money supply, under flexible exchange rate system, will result in a appreciation of the pound and a depreciation of the dollar. Hence, option(C) is correct.
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An increase in U.S. money supply, under flexible exchange rate
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11. We have a flexible exchange rate system, in equilibrium and with the balance of trade...
11. We have a flexible exchange rate system, in equilibrium and with the balance of trade in balance. Relative to Japan, the U.S. interest rate rises. The U.S. can expect to see a(n) __________ in the value of the dollar and a _______ on its balance of trade. A. appreciation; surplus B. appreciation; deficit C. depreciation; surplus D. depreciation; deficit 12. We have a flexible exchange rate system, in equilibrium and with the balance of trade in balance. Relative to...
An increase in the money supply in a flexible exchange rate regime will cause: Select one:...
An increase in the money supply in a flexible exchange rate regime will cause: Select one: a. an increase in the exchange rate. b. no change in the exchange rate. c. a depreciation of the domestic currency. d. a shift of the IP curve.
20. An increase in the Bank rate will result in A. an increase in the money...
20. An increase in the Bank rate will result in A. an increase in the money supply. B. a decrease in the monetary base. C. an increase in the monetary base. D. no change in the monetary base. E. a depreciation of the Canadian dollar. 21. Among the numerous policies, the Bank of Canada has adopted to mitigate the impact of the Covid-19 outbreak; it has decided to "widen the collateral they accept to provide lending, and expanding the list...
The government in an open economy increases spending. As a result, the supply of loanable funds...
The government in an open economy increases spending. As a result, the supply of loanable funds from national saving —, leading to a(n) — net capital outflow __ and a real exchange rate ___, a. falls, reduced, appreciation b. falls, increased, depreciation C increases, increased, appreciation d. increases, decreases, depreciation
The government of Pangea, a small open economy with a flexible exchange rate, has increased government...
The government of Pangea, a small open economy with a flexible exchange rate, has increased government spending by $20 billion. Economists argue that after the crowding-out effect on investment and the crowding-out effect on net exports, the increases in government spending will not affect aggregate demand. Arrange each statement in the proper sequence of events from first to last, to illustrate the reasoning behind this argument. First reduction in net exports due to the appreciation of the domestic currency increased...
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,...
4. 4. If the exchange rate between the dollar and the pound (the pound price of...
4. 4. If the exchange rate between the dollar
and the pound (the pound price of the dollar) is currently 1.50,
and is expected to be 1.35 in one year, then the expected rate of
Group of answer choices depreciation of the dollar is 10%.
depreciation of the dollar is 15%. appreciation of the dollar is
10%. appreciation of the dollar is 15%.
Question 4 1 pts If the exchange rate between the dollar and the pound (the pound price...
8: Under a fixed exchange rate system, the exchange rate is set by the authorities at...
8: Under a fixed exchange rate system, the exchange rate is set by the authorities at a given level. 9: The nominal exchange rate refers to the amount of local currency that individuals must give in order to buy one unit of a foreign currency. 10: A currency is said to have undergone a nominal depreciation if individuals that are holding that currency must provide fewer units of that currency to buy one unit of foreign currency 11: A currency...
Ceteris paribus, an increase in the U.S. interest rate relative to interest rates abroad should result...
Ceteris paribus, an increase in the U.S. interest rate relative to interest rates abroad should result in a: Multiple Choice None of the options. weaker dollar. lower spot exchange rate expressed in European terms. stronger dollar and a lower spot exchange rate expressed in European terms. a stronger dollar.
1.Appreciation of the domestic currency will a. increase domestic aggregate demand. b. decrease domestic aggregate supply....
1.Appreciation of the domestic currency will a. increase domestic aggregate demand. b. decrease domestic aggregate supply. c. decrease domestic aggregate demand, and possibly increase domestic aggregate supply. d. cause a deterioration in the trade balance, but have no effect on aggregate supply or demand. 2.In the current exchange rate arrangements of IMF members, a. a substantial number of countries do not have a freely floating exchange rate. b. the European Union countries fix their exchange rates against the US dollar....
20. An increase in the Bank rate will result in A. an increase in the money supply. B. a decrease in the monetary base. C. an increase in the monetary base. D. no change in the monetary base. E. a depreciation of the Canadian dollar. 21. Among the numerous policies, the Bank of Canada has adopted to mitigate the impact of the Covid-19 outbreak; it has decided to "widen the collateral they accept to provide lending, and expanding the list...
The government in an open economy increases spending. As a result, the supply of loanable funds from national saving —, leading to a(n) — net capital outflow __ and a real exchange rate ___, a. falls, reduced, appreciation b. falls, increased, depreciation C increases, increased, appreciation d. increases, decreases, depreciation
The government of Pangea, a small open economy with a flexible exchange rate, has increased government spending by $20 billion. Economists argue that after the crowding-out effect on investment and the crowding-out effect on net exports, the increases in government spending will not affect aggregate demand. Arrange each statement in the proper sequence of events from first to last, to illustrate the reasoning behind this argument. First reduction in net exports due to the appreciation of the domestic currency increased...
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,...
4. 4. If the exchange rate between the dollar
and the pound (the pound price of the dollar) is currently 1.50,
and is expected to be 1.35 in one year, then the expected rate of
Group of answer choices depreciation of the dollar is 10%.
depreciation of the dollar is 15%. appreciation of the dollar is
10%. appreciation of the dollar is 15%.
Question 4 1 pts If the exchange rate between the dollar and the pound (the pound price...
8: Under a fixed exchange rate system, the exchange rate is set by the authorities at a given level. 9: The nominal exchange rate refers to the amount of local currency that individuals must give in order to buy one unit of a foreign currency. 10: A currency is said to have undergone a nominal depreciation if individuals that are holding that currency must provide fewer units of that currency to buy one unit of foreign currency 11: A currency...
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