Homework Answers
Answer: Option(2) decrease;depreciate
If Foriegn decreases Money Supply, it's purchasing power decreases. As a result demand for goods and servieces decreases, hence optut from Home Country will decrease due to reduced demand from foriegn. Due to less requirement of Home Currency from foriegn but relatively higher supply of Home Currency, Value of home currency depreciates.
Add Answer to:
QUESTION 4 If Foreign decreases its money supply, Home's output will and currency will decrease; appreciate...
11 and 12 QUESTION 11 If Foreign decreases its interest rate, Home's output will ____ and...
11 and 12
QUESTION 11 If Foreign decreases its interest rate, Home's output will ____ and currency will O increase; appreciate O decrease; appreciate O decrease; depreciate O increase; depreciate QUESTION 12 In the short run, if there is a tax cut, output will and the exchange rate will O decrease; appreciate O increase; appreciate O increase; depreciate decrease; depreciate ALECTION 13
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
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...
3. How would a decrease in the money supply of Paraguay (currency unit: the guaraní) affect...
3. How would a decrease in the money supply of Paraguay (currency unit: the guaraní) affect its own output and its exchange rate with Brazil (currency unit: the real)? Do you think this policy in Paraguay might also affect output across the border in Brazil? Explain with a graph.
4. Chapter QuickQuiz Q4 If a nation's currency doubles in value on foreign exchange markets, the...
4. Chapter QuickQuiz Q4 If a nation's currency doubles in value on foreign exchange markets, the currency is said to, rate. reflecting a change in the exchange O appreciate, nominal O appreciate, real O depreciate, nominal O depreciate, real
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...
answer these 4 . will rate after The exchange rate for a foreign currency that is...
answer these 4 . will rate after
The exchange rate for a foreign currency that is determined by supply and demand is O a constrained exchange rate. O a floating exchange rate. O a fixed exchange rate. O a controlled exchange rate. in bank An open-market purchase of government bonds by the Fed results in reserves and in the supply of money. O an increase; a decrease O a decrease; a decrease O an increase; an increase O a decrease;...
4. If nominal money demand doubles and the real money supply also does what happens to...
4. If nominal money demand doubles and the real money supply also does what happens to the price level ( ). The price level increases by a factor of four b. The price level doubles ). The price level is unchanged. d. The price level falls by one-half. IL Short-Answer O stiens (19 points) 5. (7 points) If the Federal Reserve sold government securities, then the money supply (increase decrease remain the same), the money he would _(increase decrease remain...
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...
appreciate/depreciate appreciate/depreciate increase/decrease increase/decrease appreciate/depreciate The following questions focus on the exchange rate between the euro...
appreciate/depreciate
appreciate/depreciate
increase/decrease
increase/decrease
appreciate/depreciate
The following questions focus on the exchange rate between the euro and the Danish krone. Assume the exchange rate is flexible. The exchange rate is defined as the number of euros you must pay for one krone. Suppose an economic downturn in Denmark causes Danish incomes to decrease, while European incomes remain unchanged. Shift the appropriate curve or curves on the following graph to illustrate how this affects the market for Danish kroner if all...
11 and 12
QUESTION 11 If Foreign decreases its interest rate, Home's output will ____ and currency will O increase; appreciate O decrease; appreciate O decrease; depreciate O increase; depreciate QUESTION 12 In the short run, if there is a tax cut, output will and the exchange rate will O decrease; appreciate O increase; appreciate O increase; depreciate decrease; depreciate ALECTION 13
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
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...
3. How would a decrease in the money supply of Paraguay (currency unit: the guaraní) affect its own output and its exchange rate with Brazil (currency unit: the real)? Do you think this policy in Paraguay might also affect output across the border in Brazil? Explain with a graph.
4. Chapter QuickQuiz Q4 If a nation's currency doubles in value on foreign exchange markets, the currency is said to, rate. reflecting a change in the exchange O appreciate, nominal O appreciate, real O depreciate, nominal O depreciate, real
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...
answer these 4 . will rate after
The exchange rate for a foreign currency that is determined by supply and demand is O a constrained exchange rate. O a floating exchange rate. O a fixed exchange rate. O a controlled exchange rate. in bank An open-market purchase of government bonds by the Fed results in reserves and in the supply of money. O an increase; a decrease O a decrease; a decrease O an increase; an increase O a decrease;...
4. If nominal money demand doubles and the real money supply also does what happens to the price level ( ). The price level increases by a factor of four b. The price level doubles ). The price level is unchanged. d. The price level falls by one-half. IL Short-Answer O stiens (19 points) 5. (7 points) If the Federal Reserve sold government securities, then the money supply (increase decrease remain the same), the money he would _(increase decrease remain...
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...
appreciate/depreciate
appreciate/depreciate
increase/decrease
increase/decrease
appreciate/depreciate
The following questions focus on the exchange rate between the euro and the Danish krone. Assume the exchange rate is flexible. The exchange rate is defined as the number of euros you must pay for one krone. Suppose an economic downturn in Denmark causes Danish incomes to decrease, while European incomes remain unchanged. Shift the appropriate curve or curves on the following graph to illustrate how this affects the market for Danish kroner if all...
Most questions answered within 3 hours.
-
Batteries play an important role in our everyday lives. From
making many devices mobile, to allowing...
asked 1 minute ago -
It is possible to iterate through an array quickly and easily
using a loop?
asked 9 minutes ago -
Determine the pHpH of an HFHF solution of each of the following
concentrations. The KAKA value...
asked 4 minutes ago -
Two point charges of 7.0mL are initially 11.5m apart. What is
the change in potential energy...
asked 5 minutes ago -
Please write as a short answer
You have heartburn and a two hour working session on...
asked 10 minutes ago -
Please solve with excel and mention the excel function.
Thanks
Kevin deposits $10,000 in a savings...
asked 11 minutes ago -
Which Special Journal would the following transaction be
journalized in?
Sold merchandise on account to Customer...
asked 24 minutes ago -
Assuming 100% dissociation, calculate the freezing point (?fTf)
and boiling point (?bTb) of 1.45 ? K3PO4(aq)1.45...
asked 26 minutes ago -
An inflated helium balloon with a volume of 0.35L at
sea level (1.0 atm) was allowed...
asked 28 minutes ago -
Python 3.0 Please
Write a function that takes, as arguments, a binary string, a
list of...
asked 56 minutes ago -
(a) Calculate the momentum of a 2150 kg elephant charging a
hunter at a speed of...
asked 43 minutes ago -
all the following is an example of a fixed cost except: any cost
that changes in...
asked 45 minutes ago