An appreciation in the value of the U.S. dollar against the British pound would tend to:Select one:O a. Discourage U.S. tourists from traveling to BritainO b. Increase the number of dollars that could be bought with a poundOc. Discourage Americans from buying British goodsOd. Discourage the British from buying American goods A foreign exchange swapSelect one:O a is a spot sale of a currency.combined with a forward repurchase of the currency.Ob make up a negligible proportion of all foreign exchange trading.Oc. is a spot purchase of a currency combined with a forward purchase of the currency.O d. is a spot sale of a currency combined with a forward sale of the currency.Oe Forward market

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Answered: An appreciation in the value of the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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As the value of the American dollar increases relative to the Mexican peso, we expect that international demand for American corn output relative to Mexican corn may а. increase decrease b. stay the same as international corn demand is independent of the exchange rates С. we cannot tell Od.
A new administration was elected and a new fixed exchange rate policy was introduced. What mechanism can the new administration employ to obtain their pegged exchange rate? O a. Diplomacy O b. Arbitrage O c. Lowering local interest rates Od. Sell all their stores of foreign currency
A 216.
QUESTION 9 China has been devaluing their currency. This makes sense economically because OA. It lowers the price of its exports B. It increases the price of its exports O C. There is no economic benefit
According to the Marshall-Lerner condition, when a country's currency depreciates in real terms its trade balance will improve if Your answer: O elasticity of demand for exports = 0.9; elasticity of demand for imports = -0.4 O elasticity of demand for exports = -0.8; elasticity of demand for imports = -0.3 O elasticity of demand for exports = 0.5; elasticity of demand for imports =- 0.2 O elasticity of demand for exports = 0.3; elasticity of demand for imports = -0.5
If Canadian exports of goods and services were $37 billion, imports of goods and services were $42 billion, transfers by Canadians to foreigners were $3 billion and transfers from foreigners to Canadian citizens were $2 billion, then the current account balance would be O A. $4 billion. O B. - $6 billion. O C. $8 billion O D. $6 billion. O E. - $4 billion.
What if this appreciation leads to a surplus on the current account in the export economy, what are implications for the supply/demand of the US dollar relative to the currency of this export based economy I the foreign exchange market, holding all else constant?
Only like if no ai or downvoted for ai content Suppose that the equilibrium exchange rate between the United States and South African is 15.13 Rand per US dollar. Further suppose that the two countries are trading partners with each other. Inflation now rises in South Africa. Which of the following answer choices correctly represents the shift that would occur in the US foreign exchange market? The supply of US dollars would fall. The demand for South African Rands would rise. The supply of South African Rands would rise.
Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. O fall. O remain unchanged.
How will the following events affect exports of a country, ceteris paribus? increase decrease no change Domestic income O O level declines Foreign income level declines Domestic price level declines Foreign price level declines Exchange rate goes up (or domestic currency depreciates) O оо O O O O O O O O O O
The Federal reserve can directly intervene in the foreign exchange markets by: a. lowering interest rates. O b. exchanging dollars for foreign currency. O c. imposing barriers on international trade O d. increasing the inflation rate. CLEAR MY CHOICE
If the Americans increase the quota on Japanese electronic devices, the dollar tends to... O A. appreciate B. depreciate O C. appreciate then depreciate O D. be stable

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