26.Foreign Exchange Market1AE[Euro return]Rates of Return (in dollar terms)An increase in the money supply would shift the Rs1 curve to theand the dollar wouldO A. Left: depreciateO B. Right: depreciateO C. Right: appreciateO D. Left: appreciate3.Given the following data:Et = ¥125 = $1.00Et+1 = ¥105 = $1.00Rus = 10%Rjapan = 12%If a $1,000 is invested in the US, the future value isrepatriated back to dollars, the future value is $If the the $1.000 is invested in Japan and_respectively.O A. $1,000: $1,100O B. $1,100: $1,000O C. $1,100: $1,120O D. $1,100: $1,33321.Which of the following replicates a characteristic of horizontal FDI.O A. Behind the large increases in FDI inflows to develping countriesO B. Mainly driven by the production cost differencs between countriesC. Production cost differences in FDI to developing countriesO D. The affiliate replicates the production process elsewhere in the world30.STRAWBERRIESCHAMPAGNEaLc = 4 hours per pounda'Lc = 2 hours per poundaLW =5 hours per gallona'Lw= 4 hours per gallonНОМEFOREIGNWhich of the following statements are true?O A. Home has the absolute advantage in both strawberries and champagne and the comparative advantage in strawberriesO B. Home has the absolute and comparative advantage in champagne productionOc. Foreign has the absolute advantage in both strawberries and champagne production and the comparative advantage in champagne producxtionO D. Foreign has the absolute advantage in both Strawberries and champagne production and a comparative advantage in strawberry productionExchange rate E($/Euro)

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Foreign Exchange Market 1 A E[Euro return] Rates of Return (in dollar terms) An increase in the money supply would shift the Rg, curve to the and the dollar would O A. Left: depreciate O B. Right: depreciate OC. Right: appreciate O D. Left: appreciate Exchange rate E($/Euro)

Foreign Exchange Market 1 A E[Euro return] Rates of Return (in dollar terms) An increase in the money supply would shift the Rg, curve to the and the dollar would O A. Left: depreciate O B. Right: depreciate OC. Right: appreciate O D. Left: appreciate Exchange rate E($/Euro)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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