he supply of dollars in the foreign exchange market is likely to be upward sloping because as the price of a dollar (the exchange rate) rises ___________________________________. Group of answer choices A) foreigners demand more American goods because these goods have become less expensive to foreign consumers B) foreigners demand fewer non-American goods because these goods have become more expensive to foreign consumers C) Americans demand fewer foreign goods because these goods have become more expensive to American consumers D) Americans demand more foreign goods because these goods have become less expensive to American consumers

he supply of dollars in the foreign exchange market is likely to be upward sloping because as the price of a dollar (the exchange rate) rises ___________________________________. Group of answer choices A) foreigners demand more American goods because these goods have become less expensive to foreign consumers B) foreigners demand fewer non-American goods because these goods have become more expensive to foreign consumers C) Americans demand fewer foreign goods because these goods have become more expensive to American consumers D) Americans demand more foreign goods because these goods have become less expensive to American consumers

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter29: International Finance

Section: Chapter Questions

Problem 8P

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Similar questions

If the exchange rate between the United States dollar and the Indian rupee changes from $1=60 rupees to $1=10 rupees, ceteris paribus, one would anticipate that ___________. Group of answer choices A) India’s exports to the United States increase B) the current account in the United States’ balance of payments stays the same C)the trade deficit in the United States increases D)the United States’ imports from India increase E)the United States’ exports to India increase
Can you explain why the answer is E?
please do this for the country China.
View the data below for the exchange rate between the US dollar and the Japanese yen. How many yen could you get per dollar at the earliest date shown on the chart? Explain. How many yen could you get per dollar at the most recent date shown on the chart? Explain. Has the dollar appreciated or depreciated in value over time? Explain.
Country A’s goods have become relatively more expensive for Country B’s buyers due to a change in the exchange rate between those two country’s currencies. All other things remaining constant, this could be because Country B’s currency has __________ relative to Country A’s currency. a) depreciated b) shifted c) stagnated d) appreciated
The arrows in Figures A-D represent possible movements of the exchange rate (euros per U.S. dollar) and the quantity of U.S. dollars buyers are willing and able to buy. Use these figures to answer the following questions. Price + (Euros per U.S. Dollar) Price (Euros per U.S. Dollar) A; C O C; A B; D D; B 50 A; D 50 Figure A 75 Quantity → (Millions of U.S. Dollars) Figure C 75 Quantity (Millions of U.S. Dollars) Price + (Euros per U.S. Dollar) €2 Price (Euros per U.S. Dollar) 50 50 A depreciation of the euro against the U.S. dollar is represented by Figure depreciation of the U.S. dollar against the euro is represented by Figure Figure B D₁ 75 Quantity →→→ (Millions of U.S. Dollars) Figure D Quantity 75 (Millions of U.S. Dollars) and a
Country A’s goods have become relatively less expensive for Country B’s buyers due to a change in the exchange rate between those two country’s currencies. All other things remaining constant, this could be because Country B’s currency has __________ relative to Country A’s currency. a) shifted b) appreciated c) stagnated d) depreciated
Answer correctly and explain within 30 mins will give you positive feedback. URGENT
You work for a Nova Scotia Company trying to successfully enter the cranberry market in Australia. Analyze the entry country (Australia) based on the following; What are the major exports, dollar value, and trends? What are the major imports, dollar value, and trends? Does the entry country have a surplus or deficit for trade? What are the exchange rates? Are there any restrictions on currency trade? You should also consider sweat shops, skilled labor, employee unrest, political and social activists and labor unions in your analysis.
Suppose that yesterday, the U.S. dollar was trading on the foreign exchange market at 0.75 eurosper U.S. dollar and today the U.S. dollar is trading at 0.80 euros per U.S. dollar. Which of the twocurrencies (the U.S. dollar or the euro) has appreciated and which has depreciated today?b) Suppose that the exchange rate for the Mexican peso fell from 15 pesos per U.S. dollar to 10 pesosper U.S. dollar. What is the effect of this change on the quantity of U.S. dollars that people plan tobuy in the foreign exchange market?c) Suppose that the exchange rate rose from 80 yen per U.S. dollar to 90 yen per U.S. dollar. What isthe effect of this change on the quantity of U.S. dollars that people plan to sell in the foreignexchange market?
Suppose the US is running a trade deficit. According to our simplified model of exchange rate determination and balance of payments, we must have had a situation of Group of answer choices A) a currency that is appreciating. B) the US importing less than it is exporting. C) none of the other options. D) GB is investing (financial investment, in this context) more in the US than the US is investing in GB. E) the US is investing (financial investment, in this context) more in Great Britain (GB) than they invested in the US.
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