Homework Answers
Q11 The ans is increase, depreciate
The reduction in interest rate will give people more money in their hands which will increase the infrastructure facililities and increase in output. Also decrease in int rate will make foreign investments unattractive to investore to foreigners and will devalue currency
Q12 The ans is increase and depreciate
The reduction in tax rates will leave more disposable income with the people which will increase the production and output.
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11 and 12
QUESTION 11 If Foreign decreases its interest rate, Home's output will ____ and...
QUESTION 4 If Foreign decreases its money supply, Home's output will and currency will decrease; appreciate...
QUESTION 4 If Foreign decreases its money supply, Home's output will and currency will decrease; appreciate decrease; depreciate increase; depreciate increase; appreciate
9 and 10 thanks QUESTION 9 In the long run, with relative PPP, if country A...
9 and 10 thanks
QUESTION 9 In the long run, with relative PPP, if country A consistently has higher inflation than country B, then country A's currency will be against country B's. A. maintaining its value B. depreciating C. appreciating QUESTION 10 If investors believe a country's currency is fixed at a fundamentally overvalued level, the central bank's foreign reserves will most likely be rising True False QUESTION 11 and currency will If Foreign decreases its interest rate, Home's output...
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers...
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? Only with increasing output Only with increasing the current account balance No, not with either goal Yes, with both goals In the short run, if taxes rise, output will_and the exchange rate will increase; appreciate increase; depreciate decrease; appreciate decrease; depreciate With a fixed...
In the short run, if taxes rise, output will_and the exchange rate will increase; appreciate increase;...
In the short run, if taxes rise, output will_and the exchange rate will increase; appreciate increase; depreciate decrease; appreciate decrease; depreciate
Question 11 2.5 pts Mambo and Rumba are economies of similar sizes. Mambo's growth rate is...
Question 11 2.5 pts Mambo and Rumba are economies of similar sizes. Mambo's growth rate is 3 percent whereas Rumba is growing at a rate of 7 percent. The marginal propensity to import is the same positive value for both economies. We would depreciating. The new exchange rate will expect to see the currency of Mambo's consumers. Rumba; hurt Rumba; benefit Mambo; hurt Mambo; benefit Question 12 2.5 pts The foreign exchange market is in equilibrium, with each British pound...
QUESTION 20 and output will In the short run, if the central bank decreases the money...
QUESTION 20 and output will In the short run, if the central bank decreases the money supply, the currency will O A. appreciate; rise B. depreciate; fall OC. appreciate; fall D. depreciate; rise Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook Pro Search or type URL
hi why the answer is c? cn you show me how its calculated?\ Suppose the domestic interest rate is 3% and the foreign in...
hi why the answer is c? cn you show me how its calculated?\
Suppose the domestic interest rate is 3% and the foreign interest rate is 2%. If uncovered interest parity holds, by how much is the domestic currency expected to appreciate or depreciate against the foreign currency? a) The domestic currency is expected to appreciate by 1% b) The domestic currency is expected to appreciate by 2%. c) The domestic currency is expected to depreciate by 1% d) The...
19 20 QUESTION 19 A country with a floating exchange rate faces a short-run recession and...
19 20
QUESTION 19 A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? O Only with increasing output O Only with increasing the current account balance O No, not with either goal Yes, with both goals QUESTION 20 and output will In the short run, if the central bank decreases the money supply,...
5 and 6 QUESTION 5 In the long run, with variable real exchange rates, if American...
5 and 6
QUESTION 5 In the long run, with variable real exchange rates, if American goods become less attractive relative to European goods, the dollar will experience a real and a nominal depreciation; depreciation O appreciation; appreciation O depreciation; appreciation O appreciation, depreciation QUESTION 6 and output to A short-run increase in government spending causes the currency to depreciate; increase appreciate; increase appreciate; decrease O depreciate; decrease QUESTION 7 it to save and submit. Click Save All Answers to...
17 18 QUESTION 17 Suppose a country's central bank announces that it is decreasing the long-run...
17 18
QUESTION 17 Suppose a country's central bank announces that it is decreasing the long-run money growth rate to tame inflation. The country's currency will suddenly and its rate of depreciation will then O appreciate; rise O depreciate; rise appreciate; fall O depreciate; fall QUESTION 18 A balance of payments crisis is OA a sharp change in interest rates sparked by a change in expectations about the level of exports. ов. a sharp change in foreign reserves sparked by...
QUESTION 4 If Foreign decreases its money supply, Home's output will and currency will decrease; appreciate decrease; depreciate increase; depreciate increase; appreciate
9 and 10 thanks
QUESTION 9 In the long run, with relative PPP, if country A consistently has higher inflation than country B, then country A's currency will be against country B's. A. maintaining its value B. depreciating C. appreciating QUESTION 10 If investors believe a country's currency is fixed at a fundamentally overvalued level, the central bank's foreign reserves will most likely be rising True False QUESTION 11 and currency will If Foreign decreases its interest rate, Home's output...
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? Only with increasing output Only with increasing the current account balance No, not with either goal Yes, with both goals In the short run, if taxes rise, output will_and the exchange rate will increase; appreciate increase; depreciate decrease; appreciate decrease; depreciate With a fixed...
In the short run, if taxes rise, output will_and the exchange rate will increase; appreciate increase; depreciate decrease; appreciate decrease; depreciate
Question 11 2.5 pts Mambo and Rumba are economies of similar sizes. Mambo's growth rate is 3 percent whereas Rumba is growing at a rate of 7 percent. The marginal propensity to import is the same positive value for both economies. We would depreciating. The new exchange rate will expect to see the currency of Mambo's consumers. Rumba; hurt Rumba; benefit Mambo; hurt Mambo; benefit Question 12 2.5 pts The foreign exchange market is in equilibrium, with each British pound...
QUESTION 20 and output will In the short run, if the central bank decreases the money supply, the currency will O A. appreciate; rise B. depreciate; fall OC. appreciate; fall D. depreciate; rise Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook Pro Search or type URL
hi why the answer is c? cn you show me how its calculated?\
Suppose the domestic interest rate is 3% and the foreign interest rate is 2%. If uncovered interest parity holds, by how much is the domestic currency expected to appreciate or depreciate against the foreign currency? a) The domestic currency is expected to appreciate by 1% b) The domestic currency is expected to appreciate by 2%. c) The domestic currency is expected to depreciate by 1% d) The...
19 20
QUESTION 19 A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? O Only with increasing output O Only with increasing the current account balance O No, not with either goal Yes, with both goals QUESTION 20 and output will In the short run, if the central bank decreases the money supply,...
5 and 6
QUESTION 5 In the long run, with variable real exchange rates, if American goods become less attractive relative to European goods, the dollar will experience a real and a nominal depreciation; depreciation O appreciation; appreciation O depreciation; appreciation O appreciation, depreciation QUESTION 6 and output to A short-run increase in government spending causes the currency to depreciate; increase appreciate; increase appreciate; decrease O depreciate; decrease QUESTION 7 it to save and submit. Click Save All Answers to...
17 18
QUESTION 17 Suppose a country's central bank announces that it is decreasing the long-run money growth rate to tame inflation. The country's currency will suddenly and its rate of depreciation will then O appreciate; rise O depreciate; rise appreciate; fall O depreciate; fall QUESTION 18 A balance of payments crisis is OA a sharp change in interest rates sparked by a change in expectations about the level of exports. ов. a sharp change in foreign reserves sparked by...
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