Homework Answers
Exports would fall if exchange rate appreciates and/or if domestic output falls.
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Question 13 (1 point) Saved Which of the following would cause a reduction in exports? O 1) an increase in foreign outp...
Question 5 (1 point) v Saved Which of the following would make the spending multiplier larger?...
Question 5 (1 point) v Saved Which of the following would make the spending multiplier larger? O 1) a small marginal propensity to consume O2) a real depreciation 3) a small marginal propensity to import O 4) a real appreciation 0 5) a large initial trade deficit
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,...
An increase in aggregate demand would cause foreign investment to rise. unemployment to rise. the price...
An increase in aggregate demand would cause foreign investment to rise. unemployment to rise. the price levels to rise. The aggregate demand represents total spending on ________. a nation’s total budget a nation’s domestic output of goods and services the total supply of domestic and imported goods Which component of aggregate demand would initially be affected by a change in exchange rates? consumption net exports government spending
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...
Question 35 (Mandatory) (5 points) Saved Which of the following countries receives the most U.S. exports?...
Question 35 (Mandatory) (5 points) Saved Which of the following countries receives the most U.S. exports? A) Germany B) Japan C) Canada OD) United Kingdom Question 24 (Mandatory) (5 points) Tariffs are frequently imposed to protect A) domestic consumers from imported goods. B) domestic producers from foreign competition. OC) the exchange rate from sharp fluctuations. D) foreign producers from domestic competition.
How would aggregate demand change if foreign incomes increase and the exchange rate value of the...
How would aggregate demand change if foreign incomes increase and the exchange rate value of the dollar increases? a. Neither change would affect aggregate demand. b. The increase in income would decrease aggregate demand; the increase in the exchange rate would increase aggregate demand. c. The increase in income would increase aggregate demand; the increase in the exchange rate would decrease aggregate demand. d. Both changes would decrease aggregate demand If the exchange rate value of the dollar depreciates relative...
Suppose policy makers want to increase net exports (NX) and keep output (Y) constant. Which of...
Suppose policy makers want to increase net exports (NX) and keep output (Y) constant. Which of the following policies would most likely achieve this? A. an increase in government spending B. a real depreciation C.an increase in government spending and a decrease in the real exchange rate D. a decrease in the real exchange rate and a tax increase
The supply of loanable funds (the source of funds) consists of Question 1 options: a) Total domestic saving a...
The supply of loanable funds (the source of funds) consists of Question 1 options: a) Total domestic saving and net foreign saving. b) Investment and net exports. c) Total domestic saving and investment. d) Only total domestic saving. Question 2 (1 point) Saved Assuming all else held constant, an increase in net exports will lead to Question 2 options: a) an increase in net foreign saving. b) a decrease in the source of funds. c) a decrease in the trade...
Assume that there is a simultaneous increase in government spending and a monetary contraction. In a...
Assume that there is a simultaneous increase in government spending and a monetary contraction. In a flexible exchange rate regime, we know with certainty that such a policy mix will cause which of the following? A depreciation of the domestic currency None of the other answers is correct. A decrease in the domestic interest rate. O A decrease in output. A decrease in net exports.
Which of the following will most likely cause a nation's currency to appreciate on the foreign...
Which of the following will most likely cause a nation's currency to appreciate on the foreign exchange market? O a. A decrease in domestic interest rates O b. An increase in foreign interest rates O c. Stable domestic prices while the nation's trading partners are experiencing 10 percent inflation O d. Domestic inflation of 10 percent while the nation's trading partners are experiencing stable prices
Question 5 (1 point) v Saved Which of the following would make the spending multiplier larger? O 1) a small marginal propensity to consume O2) a real depreciation 3) a small marginal propensity to import O 4) a real appreciation 0 5) a large initial trade deficit
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,...
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...
Question 35 (Mandatory) (5 points) Saved Which of the following countries receives the most U.S. exports? A) Germany B) Japan C) Canada OD) United Kingdom Question 24 (Mandatory) (5 points) Tariffs are frequently imposed to protect A) domestic consumers from imported goods. B) domestic producers from foreign competition. OC) the exchange rate from sharp fluctuations. D) foreign producers from domestic competition.
Assume that there is a simultaneous increase in government spending and a monetary contraction. In a flexible exchange rate regime, we know with certainty that such a policy mix will cause which of the following? A depreciation of the domestic currency None of the other answers is correct. A decrease in the domestic interest rate. O A decrease in output. A decrease in net exports.
Which of the following will most likely cause a nation's currency to appreciate on the foreign exchange market? O a. A decrease in domestic interest rates O b. An increase in foreign interest rates O c. Stable domestic prices while the nation's trading partners are experiencing 10 percent inflation O d. Domestic inflation of 10 percent while the nation's trading partners are experiencing stable prices
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