Which of the following statements is true?ohe demand for foreign currency in the United States increases as the volume of imports increasesO The demand for foreign currency in the United States increases as the volume of exports increasesO The demand for toreign currency in the United States decreases with a decrease in the inflation rate abroad.O The demund for foreign currency in the United States decreases as foreign interest rates riseO The demand for foreign currency in the United States is unaffected by U.S. demand for foreign goods andservices

The answer is - The demand for foreign currency in United State increases as the volume of export…

hich of the following statements is true? OThe demand for foreign currency in the United States increases as the volume of imports increases O The demand for foreign currency in the United States increases as the volume of exports increases O The demand for foreign currency in the United States decreases with a decrease in the inflation rate abroad. O The demand for foreign currency in the Unined States decreases as foreign interest rates rise O The demand for foreign currency in the United States is unaffected by US demand for foreign goods and services

hich of the following statements is true? OThe demand for foreign currency in the United States increases as the volume of imports increases O The demand for foreign currency in the United States increases as the volume of exports increases O The demand for foreign currency in the United States decreases with a decrease in the inflation rate abroad. O The demand for foreign currency in the Unined States decreases as foreign interest rates rise O The demand for foreign currency in the United States is unaffected by US demand for foreign goods and services

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

If the exchange rate is constant and U.S. exports increase, then in the foreign exchange market the O a. quantity of U.S. dollars demanded decreases. O b. quantity of U.S. dollars demanded increases. O c. supply of U.S. dollars increases. O d. demand for U.S. dollars decreases. О е. demand for U.S. dollars increases.
The law of supply of foreign exchange tells us that, other things remaining the same, Select one: O A. the higher the exchange rate, the greater is the supply of Canadian dollars O B the lower the exchange rate, the smaller is the supply of Canadian dollars. O C. the higher the exchange rate, the greater is the quantity of Canadian dollars supplied. OD the lower the exchange rate, the greater is the quantity of Canadian dollars supplied. O E. the lower the exchange rate, the greater is the supply of Canadian dollars.
The supply curve for Japanese yen on the foreign-exchange market is upward-sloping when plotted against the exchange rate (measured as the Canadian dollar price of one Japanese yen) because Select one O a when the dollar appreciates, Canadian goods are cheaper in Japan, and more Canadian exports are therefore demanded, O b. when the dollar depreciates, the price of Japanese exports to Canada decreases. Oc when the dollar depreciates, Canadian goods are cheaper in Japan, and more Canadian exports are therefore demanded O d. an appreciation of the dollar will cause the yen prices of Canadian exports to fall Oe. a depreciation of the dollar will cause the yen prices of Canadian goods to rise.
Identify each transaction by whether it belongs in the US current account or financial account: Microsoft, A US company, buys a small software company in Estonia. O Current ACcount O Financial Account
Fast pls solve this question correctly in 5 min pls I will give u like for sure
If the U.S. interest rate falls relative to other countries' interest rates, then the exchange rate O a. rises only if it was the foreign interest rate that changed. O b. falls only if it was the U.S. interest rate that changed. O c. definitely rises. O d. definitely falls. O e. does not change.
Purchasing power parity theory would suggest that if the Canadian price of a basket of goods is C$1,800, but the same basket in the United States is U.S.$1,300, and the actual exchange rate is C$1.30 = U.S.S1.00, then the value of the Canadian dollar should O A. depreciate by approximately 8.9 percent. O B. depreciate by approximately 6.2 percent. OC. appreciate by approximately 8.9 percent. O D. appreciate by approximately 6.2 percent. O E. remain unchanged.
Please no written by hand solutions
U.S. firms involved in international trade have to a. ignore U.S. inflation and ignore value of the dollar relative to foreign currencies. b. ignore U.S. inflation and guess value of the dollar relative to foreign currencies. Oc. International transactions are not affected by inflation or foreign exchange. O d. anticipate U.S. inflation and guess value of the dollar relative to foreign currencies. e. anticipate U.S. inflation and ignore value of the dollar relative to foreign currencies.
What are the advantages of a currency that is depreciating (weakening)? 2 answers Imports will increase O Exports will increase and create jobs Trade Surplus (Exports are less than Imports) Trade Surplus (Exports are greater than Imports)
Suppose that Japan has adopted a floating exchange rate for its currency, the Japanese Yen. When the Japanese central bank conducts monetary policy that raises interest rates in Japan, the Demand for Japanese Yen will and the Japanese Yen will O increase; appreciate O decrease; appreciate O increase; depreciate O decrease; depreciate
A car costs $20,000 in the U.S. The exchange rate between the euro and the dollar is 0.813 euros per dollar. Ignoring transportation and other similar costs, what would be the euro price of the same car in France? Select one: O a. 28,000 euros O b. 16,260 euros O c. 24,600 euros O d. 15,300 euros Check