Homework Answers
c is answer
because relatively low inflation compared to trading ;partners help the local currency due to expected rise in purchasing power
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Which of the following will most likely cause a nation's currency to appreciate on the foreign...
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...
Which would most likely shift the aggregate supply curve? A change in the prices of _____....
Which would most likely shift the aggregate supply curve? A change in the prices of _____. domestic products foreign products financial assets resources A decrease in aggregate demand in the short run will reduce _____. both real output and the price level the price level and increase the real domestic output the real domestic output and have no effect on the price level the price level and have no effect on real domestic output The economy's long-run AS curve assumes...
The sum of currency and bank deposits at the central bank is called: a. the money...
The sum of currency and bank deposits at the central bank is called: a. the money supply. b. domestic assets. c. the monetary base. d. fractional reserves. Official intervention in the foreign exchange market to defend a fixed exchange rate when the value of the country's currency is under downward pressure causes a. international reserve holdings to rise. b. a downward pressure on the country's interest rates. c.an increase in the liabilities of the central bank. d. the domestic money...
Several factors affect the exchange rate of a currency with another currency. Which of the following...
Several factors affect the exchange rate of a currency with another currency. Which of the following statements are true about the factors that have an impact on exchange rates? Check all that apply. When a government limits imports and restricts foreign exchange transactions, its currency's value tends to increase relative to other currencies. An increase in inflation tends to increase the currency's value with respect to other currencies with lower inflation. If a government intends to prevent its currency's value...
(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...
an appreciation of a nation's currency can be the result of which of the following? a....
an appreciation of a nation's currency can be the result of which of the following? a. an increase in net exports b. a decrease in net exports c. a fall in national saving d. a decrease in domestic demand for investment please explain all the results from the mark a b c d and the answer
Question 40 (2 points) Saved Which of the following would likely cause the US dollar to...
Question 40 (2 points) Saved Which of the following would likely cause the US dollar to appreciate? Foreign cars become more popular Interest rates on US bonds increase Americans become wealthier O US Stocks become riskier
If the U.S. dollar appreciates relative to foreign currency, what is likely to be the result...
If the U.S. dollar appreciates relative to foreign currency, what is likely to be the result for the U.S. company that has company branches abroad? Select one: a. Profits will increase, when measured in U.S. dollars. b. Profits will decrease, when measured in U.S. dollars. c. Foreign exports to the United States will decrease. d. Foreign demand for U.S. goods and services will decrease. If a company is considering optimizing the physical location for every activity in the value chain,...
With the case of an open-market sale of securities by the central bank, we should most...
With the case of an open-market sale of securities by the central bank, we should most likely expect (ceteris paribus) a. an excess demand for bonds. b. increase in the level of GDP. c. monetary stimulus for the domestic economy. d. depreciation of the currency in foreign exchange. e. higher rates of inflation.
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
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...
The sum of currency and bank deposits at the central bank is called: a. the money supply. b. domestic assets. c. the monetary base. d. fractional reserves. Official intervention in the foreign exchange market to defend a fixed exchange rate when the value of the country's currency is under downward pressure causes a. international reserve holdings to rise. b. a downward pressure on the country's interest rates. c.an increase in the liabilities of the central bank. d. the domestic money...
Several factors affect the exchange rate of a currency with another currency. Which of the following statements are true about the factors that have an impact on exchange rates? Check all that apply. When a government limits imports and restricts foreign exchange transactions, its currency's value tends to increase relative to other currencies. An increase in inflation tends to increase the currency's value with respect to other currencies with lower inflation. If a government intends to prevent its currency's value...
(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 40 (2 points) Saved Which of the following would likely cause the US dollar to appreciate? Foreign cars become more popular Interest rates on US bonds increase Americans become wealthier O US Stocks become riskier
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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