Economics

An increase in capital inflows will

An increase in capital inflows will

An increase in capital inflows will
A) increase net foreign investment.
B) increase capital outflows.
C) decrease capital outflows.
D) increase the value of the domestic currency.

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Sydnie

If the dollar depreciates against the Indian rupee

If the dollar depreciates against the Indian rupee

If the dollar depreciates against the Indian rupee
A) Indian imports to the U.S. become less expensive.
B) U.S. exports to India become less expensive.
C) U.S. exports to India become more expensive.
D) The value of Indian imports

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Sydnie

If the exchange rate changes from $0.08 = 1 mexican peso to $0.09 = 1 mexican peso, then

If the exchange rate changes from $0.08 = 1 mexican peso to $0.09 = 1 mexican peso, then

If the exchange rate changes from $0.08 = 1 mexican peso to $0.09 = 1 mexican peso, then
A) both the peso and dollar have appreciated.
B) both the peso and dollar have depreciated.
C) the peso has appreciated and the dollar has depreci

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Sydnie

If the exchange rate changes from $2.00 = 1 euro to $1.98 = 1 euro then

If the exchange rate changes from $2.00 = 1 euro to $1.98 = 1 euro then

If the exchange rate changes from $2.00 = 1 euro to $1.98 = 1 euro then
A) the dollar has depreciated.
B) the dollar has appreciated.
C) the euro has appreciated.
D) the euro has stayed constant in value.

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Sydnie

When exchange rates are ________, we say that the country's exchange rate is fixed.

When exchange rates are ________, we say that the country's exchange rate is fixed.

When exchange rates are ________, we say that the country's exchange rate is fixed.
A) determined in the market
B) set by a country's central bank
C) determined by supply and demand
D) relatively stable

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Sydnie

If a country has a ________ exchange rate, its central bank must buy and sell its holdings of curren

If a country has a ________ exchange rate, its central bank must buy and sell its holdings of curren

If a country has a ________ exchange rate, its central bank must buy and sell its holdings of currencies to maintain a given exchange rate.
A) floating
B) flexible
C) fixed
D) all of the above

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Sydnie

When Americans decrease their demand for Japanese goods

When Americans decrease their demand for Japanese goods

When Americans decrease their demand for Japanese goods
A) the demand for dollars will rise, and the demand for yen will rise.
B) the demand for dollars will fall, and the demand for yen will rise.
C) the supply of dollars will rise, a

Tidy   557   1 Reply

Sydnie

Which of the following will shift the demand for the euro to the right?

Which of the following will shift the demand for the euro to the right?

Which of the following will shift the demand for the euro to the right?
A) an increase in interest rates in the European Union
B) an increase in incomes in countries that buy goods from the European Union
C) expectations among speculat

Tidy   590   1 Reply

Sydnie

How will an interest rate increase in the United States affect equilibrium in the market for dollars

How will an interest rate increase in the United States affect equilibrium in the market for dollars

How will an interest rate increase in the United States affect equilibrium in the market for dollars against foreign currencies? (Assume the exchange rate is stated in terms of foreign currency per U.S. dollar.)
A) The equilibrium exchange rate

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Sydnie

A decrease in the demand for American-made goods will

A decrease in the demand for American-made goods will

A decrease in the demand for American-made goods will
A) increase the supply of dollars in the foreign exchange market.
B) decrease the supply of dollars in the foreign exchange market.
C) increase the demand for dollars in the foreign

Tidy   233   1 Reply

Sydnie

Refer to the Article Summary. All else equal, a depreciation of the Indian rupee relative to a curre

Refer to the Article Summary. All else equal, a depreciation of the Indian rupee relative to a curre

Refer to the Article Summary. All else equal, a depreciation of the Indian rupee relative to a currency such as the U.S. dollar should ________ the current account balance in India and therefore ________ the financial account balance in India.
A

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Sydnie

Refer to the Article Summary. All else equal, a depreciation of the Indian rupee relative to a curre

Refer to the Article Summary. All else equal, a depreciation of the Indian rupee relative to a curre

Refer to the Article Summary. All else equal, a depreciation of the Indian rupee relative to a currency such as the U.S. dollar should ________ Indian exports and ________ imports to India.
A) increase; increase
B) increase; decrease
C

Tidy   313   1 Reply

Sydnie

If the demand for the yen increases relative to the dollar, which of the following would occur?

If the demand for the yen increases relative to the dollar, which of the following would occur?

If the demand for the yen increases relative to the dollar, which of the following would occur?
A) The dollar will appreciate.
B) The yen will depreciate.
C) The dollar will depreciate.
D) The demand for the dollar will increase.

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Sydnie

Which of the following would cause the dollar to depreciate?

Which of the following would cause the dollar to depreciate?

Which of the following would cause the dollar to depreciate?
A) an increase in the demand for dollars
B) a decrease in the demand for dollars
C) a decrease in the supply of dollars
D) a decrease in the demand for imports from for

Tidy   174   2 Replies

Sydnie

Currency traders expect the dollar to depreciate. What impact will this have on equilibrium in the f

Currency traders expect the dollar to depreciate. What impact will this have on equilibrium in the f

Currency traders expect the dollar to depreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will decrease.
B) The dollar will depreciate,

Tidy   311   1 Reply

Sydnie

If there is currently a shortage of dollars, which of the following would you expect to see in the f

If there is currently a shortage of dollars, which of the following would you expect to see in the f

If there is currently a shortage of dollars, which of the following would you expect to see in the foreign exchange market?
A) The dollar will appreciate.
B) The dollar will depreciate.
C) There will be an increase in the demand for do

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Sydnie

Currency traders expect the value of the dollar to rise. What effect will this have on the demand fo

Currency traders expect the value of the dollar to rise. What effect will this have on the demand fo

Currency traders expect the value of the dollar to rise. What effect will this have on the demand for dollars and the supply of dollars in the foreign exchange market?
A) Demand for dollars will increase, and supply of dollars will decrease.

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Sydnie

When the market value of the dollar falls relative to other currencies around the world, we say that

When the market value of the dollar falls relative to other currencies around the world, we say that

When the market value of the dollar falls relative to other currencies around the world, we say that
A) the dollar has appreciated.
B) the dollar has depreciated.
C) the demand for dollars has decreased.
D) the supply of dollars h

Tidy   302   2 Replies

Sydnie

You're traveling in Japan and are thinking about buying a new kimono. You've decided you'd be willin

You're traveling in Japan and are thinking about buying a new kimono. You've decided you'd be willin

You're traveling in Japan and are thinking about buying a new kimono. You've decided you'd be willing to pay $175 for a new kimono, but kimonos in Japan are all priced in yen. If the kimono you're looking at costs 14,000 yen, unde

Tidy   282   1 Reply

Sydnie

You're traveling in Japan and are thinking about buying a new kimono. You've decided you'd be willin

You're traveling in Japan and are thinking about buying a new kimono. You've decided you'd be willin

You're traveling in Japan and are thinking about buying a new kimono. You've decided you'd be willing to pay $175 for a new kimono, but kimonos in Japan are all priced in yen. If the exchange rate is 89 yen per dollar, what is the high

Tidy   317   1 Reply

Sydnie

If the nominal exchange rate between the American dollar and the New Zealand dollar is 1.36 New Zeal

If the nominal exchange rate between the American dollar and the New Zealand dollar is 1.36 New Zeal

If the nominal exchange rate between the American dollar and the New Zealand dollar is 1.36 New Zealand dollars per American dollar, how many American dollars are required to buy a product that costs 3.50 New Zealand dollars?
A) $2.14
B) $2

Tidy   544   1 Reply

Sydnie

Ceteris paribus, a rise in interest rates in the United States will cause the yen price of the dolla

Ceteris paribus, a rise in interest rates in the United States will cause the yen price of the dolla

Ceteris paribus, a rise in interest rates in the United States will cause the yen price of the dollar in international exchange markets to ________. I.e., the dollar ________ in value against the yen.
A) increase; appreciates
B) increase; d

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Sydnie

In international exchange markets, a rise in interest rates in the United States will cause the dema

In international exchange markets, a rise in interest rates in the United States will cause the dema

In international exchange markets, a rise in interest rates in the United States will cause the demand for dollars to ________ and the supply of dollars to ________.
A) increase; increase
B) increase; decrease
C) decrease; increase

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Sydnie

How does a decrease in value of a country's currency relative to other currencies affect its balance

How does a decrease in value of a country's currency relative to other currencies affect its balance

How does a decrease in value of a country's currency relative to other currencies affect its balance of trade?
A) A decrease in value of a country's currency relative to other currencies raises imports, reduces exports, and reduces the

Tidy   191   1 Reply

Sydnie

When exchange rates are not determined in the market but are instead set by a country's central bank

When exchange rates are not determined in the market but are instead set by a country's central bank

When exchange rates are not determined in the market but are instead set by a country's central bank, we say that the country's exchange rate is
A) flexible.
B) fixed.
C) a nominal exchange rate.
D) a real exchange rate.

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Sydnie

If a country has a fixed exchange rate

If a country has a fixed exchange rate

If a country has a fixed exchange rate
A) the equilibrium exchange rate in that market does not respond to changes in supply and demand for currency.
B) central banks have more control over real GDP in the economy.
C) central banks mus

Tidy   269   2 Replies

Sydnie

An appreciating yen makes Japanese products

An appreciating yen makes Japanese products

An appreciating yen makes Japanese products
A) more expensive in foreign markets.
B) less expensive in foreign markets.
C) more expensive in the Japanese market.
D) more expensive in both foreign markets and the Japanese market.

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Sydnie

The recession of 2007-2009 decreased the demand for imports in Japan, which caused the ________ curv

The recession of 2007-2009 decreased the demand for imports in Japan, which caused the ________ curv

The recession of 2007-2009 decreased the demand for imports in Japan, which caused the ________ curve for the yen to ________, increasing the exchange rate and the value of the yen.
A) supply; right
B) supply; left
C) demand; right

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Sydnie

What effect does a depreciation of the dollar have on real GDP in the United States in the short run

What effect does a depreciation of the dollar have on real GDP in the United States in the short run

What effect does a depreciation of the dollar have on real GDP in the United States in the short run?
A) Real GDP will fall.
B) Real GDP will rise.
C) Real GDP will be unaffected by the depreciation of the dollar.
D) Real GDP will

Tidy   256   1 Reply

Sydnie

If the dollar appreciates, how will aggregate demand in the United States be affected?

If the dollar appreciates, how will aggregate demand in the United States be affected?

If the dollar appreciates, how will aggregate demand in the United States be affected?
A) Aggregate demand will shift to the right as exports increase.
B) Aggregate demand will shift to the right as imports increase.
C) Aggregate deman

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Sydnie

When Americans increase their demand for Japanese goods

When Americans increase their demand for Japanese goods

When Americans increase their demand for Japanese goods
A) the demand for dollars will rise, and the demand for yen will rise.
B) the demand for dollars will fall, and the demand for yen will rise.
C) the supply of dollars will rise, a

Tidy   169   1 Reply

Sydnie

Which of the following will not shift the demand for the euro to the right?

Which of the following will not shift the demand for the euro to the right?

Which of the following will not shift the demand for the euro to the right?
A) an increase in interest rates in the European Union
B) an increase in incomes in countries that buy goods from the European Union
C) expectations among spec

Tidy   279   2 Replies

Sydnie

How will contractionary monetary policy in Japan affect the demand and supply of the yen in the fore

How will contractionary monetary policy in Japan affect the demand and supply of the yen in the fore

How will contractionary monetary policy in Japan affect the demand and supply of the yen in the foreign exchange market?
A) The demand for the yen will fall, and the supply of the yen will increase.
B) The demand for the yen will increase,

Tidy   247   1 Reply

Sydnie

How will an interest rate decrease in the United States affect equilibrium in the foreign exchange m

How will an interest rate decrease in the United States affect equilibrium in the foreign exchange m

How will an interest rate decrease in the United States affect equilibrium in the foreign exchange market?
A) The equilibrium exchange rate will increase, and the equilibrium quantity of dollars traded cannot be determined.
B) The equilibri

Tidy   171   1 Reply

Sydnie

An expansionary monetary policy in the United States should

An expansionary monetary policy in the United States should

An expansionary monetary policy in the United States should
A) decrease the foreign currency price of U.S. exports.
B) cause the dollar to appreciate.
C) decrease the dollar price of imports.
D) decrease net exports.

Tidy   191   1 Reply

Sydnie

An increase in capital inflows will

An increase in capital inflows will

An increase in capital inflows will
A) increase net foreign investment.
B) increase capital outflows.
C) decrease capital outflows.
D) increase the equilibrium exchange rate.

Tidy   248   1 Reply

Sydnie

If the exchange rate changes from $1.45 = 1 euro to $1.37 = 1 euro, then

If the exchange rate changes from $1.45 = 1 euro to $1.37 = 1 euro, then

If the exchange rate changes from $1.45 = 1 euro to $1.37 = 1 euro, then
A) both the euro and dollar have appreciated.
B) both the euro and dollar have depreciated.
C) the euro has appreciated and the dollar has depreciated.
D) th

Tidy   821   1 Reply

Sydnie

If the exchange rate changes from $2.00 = £1 to $2.01 = £1 then

If the exchange rate changes from $2.00 = £1 to $2.01 = £1 then

If the exchange rate changes from $2.00 = £1 to $2.01 = £1 then
A) the dollar has depreciated.
B) the dollar has appreciated.
C) the British pound has depreciated.
D) the British pound has stayed constant in value.

Tidy   595   2 Replies

Sydnie

An increase in the demand for American-made goods will

An increase in the demand for American-made goods will

An increase in the demand for American-made goods will
A) increase the supply of dollars on the foreign exchange market.
B) decrease the supply of dollars on the foreign exchange market.
C) increase the demand for dollars on the foreig

Tidy   398   1 Reply

Sydnie

Which of the following would cause the dollar to appreciate?

Which of the following would cause the dollar to appreciate?

Which of the following would cause the dollar to appreciate?
A) an increase in the demand for dollars
B) a decrease in the demand for dollars
C) an increase in the supply of dollars
D) an increase in the demand for imports from f

Tidy   199   1 Reply

Sydnie