Question

1. An increase in Canada's interest rates relative to US interest rates should A.  encourage more Canadians...

1.

An increase in Canada's interest rates relative to US interest rates should
A.  encourage more Canadians to vacation in the US
B.  encourage more Americans to vacation in Canada
C.  decrease the value of the Canadian dollar
D.  stimulate Canada's exports

2.

Which of the following is not likely to result in an appreciation of the Canadian dollar?
A.  more Canadians vacation in Florida
B.  the demand for Canadian dollars on foreign exchange markets exceeds the supply
C.  an increase in Canadian interest rates
D.  expectations of an appreciation of the Canadian dollar

3. IF the same sweater costs $40 in Canada, while costing 6 000 yen in Japan, and the exchange rate is 125 yen per Canadian dollar, then the sweater is cheaper in Canada.

True
False
4. If the exchange rate moves so that fewer Canadian dollars are required to buy an Indian rupee, then fewer Canadian goods and services will be demanded by the people of India.
True
False
0 0
Add a comment Improve this question Transcribed image text
Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
1. An increase in Canada's interest rates relative to US interest rates should A.  encourage more Canadians...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • India tends to have much higher inflation than Australia and also much higher interest rates than...

    India tends to have much higher inflation than Australia and also much higher interest rates than Australia. Inflation and interest rates are much more volatile in India than in industrialised countries. The value of the Indian rupee is typically more volatile than the currencies of industrialised countries from an Australian perspective; it has typically depreciated from one year to the next, but the degree of depreciation has varied substantially. The bid/ask spread tends to be wider for the rupee than...

  • 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,...

  • 7. Inflation, interest rates, and exchange rates Aa Aa E Relative inflation rates affect interest rates,...

    7. Inflation, interest rates, and exchange rates Aa Aa E Relative inflation rates affect interest rates, exchange rates, the overall economic health of a country, and the operations and profitability of multinational companies. Consider the following statement: If a company borrows from a country with low interest rates, and the currency of the lending country appreciates, it becomes more expensive for the borrowing company to repay the initial loan. Based on your understanding of the relationship between relative inflation rates...

  • Use the foreign exchange model to explain the impact of an increase in US interest rates...

    Use the foreign exchange model to explain the impact of an increase in US interest rates on the Australian dollar?

  • 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.

  • Can you please state true false or uncertain and explain the reasoning in 4 or more...

    Can you please state true false or uncertain and explain the reasoning in 4 or more sentences 7)If the CPI increases from 150 to 153, the inflation rate is 2%. So if your savings account pays a nominal interest rate of 2% then the real interest rate on your account is 0%. 8) Assuming that exchange rates are consistent across currencies, then if the Canadian dollar exchange rate with the US dollar and the US dollar exchange rate with the...

  • Need answer for both 3 questions Question 14 (1 point) Suppose that over the past decade,...

    Need answer for both 3 questions Question 14 (1 point) Suppose that over the past decade, U.S. inflation is greater than that in Japan. Further assume that during this same period, the U.S. dollar appreciates relative to the Japanese yen, Given this information, and assuming Japan as the domestic economy, 1) the real exchange rate remains unchanged. 2) the real exchange rate must increase. 3) the real exchange rate can decrease or remain the same, but not increase. 4) the...

  • QUICK CHECK multiple choice 1. Holding other things constant, an increase in the world interest rate...

    QUICK CHECK multiple choice 1. Holding other things constant, an increase in the world interest rate increases which of the following? a. national saving and domestic investment b. national saving and the net capital outflow c. domestic investment and the net capital outflow d. national saving only 2. 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...

  • please explain part A and Part B separately. 1. Monetary Approach to Exchange Rates Suppose you...

    please explain part A and Part B separately. 1. Monetary Approach to Exchange Rates Suppose you learn that the current exchange rate for the Japanese Yen is $1 = 120 yen. a. If you expect Japanese monetary growth to be a total of 25% larger over the next ten years than US monetary growth, what is your best guess as to the exchange rate ten years from now? What theory underlies your prediction? Explain why we apply this theory here...

  • QUESTION 1 If firms decide to raise more funds through the sale of bonds, interest rates...

    QUESTION 1 If firms decide to raise more funds through the sale of bonds, interest rates will rise. True False 1 points    QUESTION 2 If the price of bonds is higher than the market equilibrium then their price will fall and interest rates will fall as well. True False 1 points    QUESTION 3 As explained in the text, assets may be financial or non-financial. True False 1 points    QUESTION 4 In deciding what assets to hold, people...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT