27. When a country’s currency depreciates relative to other currencies, domestic goods become ______ for ______...
27.
When a country’s currency depreciates relative to other currencies, domestic goods become ______ for ______ buyers.
cheaper; domestic
more expensive; foreign
cheaper; foreign
absolutely free; all
more expensive; domestic
Homework Answers
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27.
When a country’s currency depreciates relative to other
currencies, domestic goods become ______ for ______...
A currency depreciates when...
A currency depreciates when...(a) it becomes less valuable relative to other currencies. (b) the economy of that country is growing too rapidly. (c) the price of that currency rises in the currency exchange markets. (d) foreigners make an agreement with each other to increase competition for that currency.
Question 5 When the real exchange rate appreciates, domestic goods become less expensive relative to foreign...
Question 5 When the real exchange rate appreciates, domestic goods become less expensive relative to foreign goods. A. True B. False Question 6 A Honda SUV sells for $50,000 in the U.S. and 200,000 rubles in Russia. If purchasing-power parity holds, what is the nominal exchange rate (rubles per dollar)?
1. When a currency appreciates, the prices of its imports from other countries will: A. increase....
1. When a currency appreciates, the prices of its imports from other countries will: A. increase. B. decrease C. remain constant. D. fluctuates randomly. 2. When the dollar appreciates relative to the Canadian dollar: A. Canadian goods become more expensive in the United States. B. U.S. goods become more expensive in Canada. C) U.S. residents tend to buy more from Canada, since the United States has a weak currency. D) the United States sells more goods to Canada. 3. If...
20. When a country's exchange rate depreciates, the price of: A: that country's goods abroad decreases...
20. When a country's exchange rate depreciates, the price of: A: that country's goods abroad decreases B: that country's goods abroad increases C: foreign goods sold in the country increases D: that country's goods produced and sold locally increases 21. A central bank may seek to influence its country's currency by: A: imposing limits on the number of goods that may be imported B: restricting the outflow of funds from the home country C: intervening directly in the FX market...
A devaluation of the home currency increases output and makes domestic goods and services cheaper relative...
A devaluation of the home currency increases output and makes domestic goods and services cheaper relative to those sold abroad. state whether the statements are TRUE or FALSE and briefly elaborate with a relevant explanation why you believe them to be TRUE or FALSE. (10 marks)
The depreciation of the dollar relative to other currencies will have which of the following results?...
The depreciation of the dollar relative to other currencies will have which of the following results? 1. U.S. exports will become more competitive in world markets. II. U.S. exports will become less competitive in world markets. III. Foreign imports will become more competitive in the U.S. IV. Foreign imports will become less competitive in the U.S. (A) I and 11 (B) I and IV (C) Il and 111 (D) III and IV
answer these 4 . will rate after If the prices in the United States decrease compared...
answer these 4 . will rate after
If the prices in the United States decrease compared to other countries, we would expect o the demand for dollars to increase because U.S. goods are cheaper. the demand for dollars to decrease because U.S. goods are more expensive. the supply of foreign currency in the foreign exchange rate markets to decrease. the demand for foreign currency in the foreign exchange rate markets to increase. We were unable to transcribe this imageThe supply...
[10] Which of the following would increase the value of the British pound when compared to...
[10] Which of the following would increase the value of the British pound when compared to the U.S. dollar? A) A decrease in the U.S. demand for pounds. B) An increase in the U.S. demand for pounds. C) An increase in the supply of pounds to persons holding U.S. dollars. D) None of the above. [10A] When the value of the dollar drops in comparison to other nations' monies: A) foreign-made products become more expensive to U.S. buyers. B) U.S.-made...
Question 19 1 pts Let's say that the following two changes take place in the United...
Question 19 1 pts Let's say that the following two changes take place in the United States: 1. Corporate tax rates increase, making it less attractive for domestic and foreign corporations to invest in the U.S. 2. The quality of U.S.goods deteriorates, thus decreasing the demand for U.S.goods. Which of the following will happen as a result of these two changes? The U.S. dollar will increase in value and the price of our exports will decrease. The U.S. dollar will...
When the value of the U.S. dollar is declining relative to other currencies this means that:...
When the value of the U.S. dollar is declining relative to other currencies this means that: Multiple Choice U.S. firms will be less profitable The U.S. trade balance will worsen. U.S. exporters will face a greater challenge in exporting U.S.-made products U.S. exporters will have a temporary advantage over The U.S. trade balance will worsen. U.S. exporters will face a greater challenge in exporting U.S.-made products. U.S. exporters will have a temporary advantage over other countries in foreign trade. U.S....
20. When a country's exchange rate depreciates, the price of: A: that country's goods abroad decreases B: that country's goods abroad increases C: foreign goods sold in the country increases D: that country's goods produced and sold locally increases 21. A central bank may seek to influence its country's currency by: A: imposing limits on the number of goods that may be imported B: restricting the outflow of funds from the home country C: intervening directly in the FX market...
The depreciation of the dollar relative to other currencies will have which of the following results? 1. U.S. exports will become more competitive in world markets. II. U.S. exports will become less competitive in world markets. III. Foreign imports will become more competitive in the U.S. IV. Foreign imports will become less competitive in the U.S. (A) I and 11 (B) I and IV (C) Il and 111 (D) III and IV
answer these 4 . will rate after
If the prices in the United States decrease compared to other countries, we would expect o the demand for dollars to increase because U.S. goods are cheaper. the demand for dollars to decrease because U.S. goods are more expensive. the supply of foreign currency in the foreign exchange rate markets to decrease. the demand for foreign currency in the foreign exchange rate markets to increase. We were unable to transcribe this imageThe supply...
Question 19 1 pts Let's say that the following two changes take place in the United States: 1. Corporate tax rates increase, making it less attractive for domestic and foreign corporations to invest in the U.S. 2. The quality of U.S.goods deteriorates, thus decreasing the demand for U.S.goods. Which of the following will happen as a result of these two changes? The U.S. dollar will increase in value and the price of our exports will decrease. The U.S. dollar will...
When the value of the U.S. dollar is declining relative to other currencies this means that: Multiple Choice U.S. firms will be less profitable The U.S. trade balance will worsen. U.S. exporters will face a greater challenge in exporting U.S.-made products U.S. exporters will have a temporary advantage over The U.S. trade balance will worsen. U.S. exporters will face a greater challenge in exporting U.S.-made products. U.S. exporters will have a temporary advantage over other countries in foreign trade. U.S....
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