How will an increase in remittance flows to your country during the Christmas Season affect the market for foreign exchange? Select one: a. Outward shift of the demand curve, real exchange rate rises and the balance of trade rises O b. Outward shift of the supply curve, real exchange rate falls and the balance of trade falls O c. Inward shift of the supply curve, real exchange rate rises and the balance of trade rises O d. Inward shift of the demand curve, real exchange rate falls and the balance of trade falls O e. Inward shift of the demand curve, real exchange rate rises and the balance of trade falls

How will an increase in remittance flows to your country during the Christmas Season affect the market for foreign exchange? Select one: a. Outward shift of the demand curve, real exchange rate rises and the balance of trade rises O b. Outward shift of the supply curve, real exchange rate falls and the balance of trade falls O c. Inward shift of the supply curve, real exchange rate rises and the balance of trade rises O d. Inward shift of the demand curve, real exchange rate falls and the balance of trade falls O e. Inward shift of the demand curve, real exchange rate rises and the balance of trade falls

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Determine which account of the Balance-of-Payments is affected the following transaction: A local…

A: The objective of the question is to identify which account of the Balance-of-Payments is affected…

Q: Which statement best explains the relationship among price levels, nominal and real exchange rates,…

A: Money supply(MS) refers to the total money amount within an economy. It influences interest rates,…

Q: Given our complete frugal governed open economy model of the US with flexible exchange rates, if…

A: Aggregate demand curve depicts inverse relationship between price level and total output in the…

Q: Nigeria has a positive trade balance of $10 billion. If it has a negative balance of services of $8…

A: Balance of trade is otherwise called net export, trade balance, or global trade balance.

Q: A devalued or weak US Dollar: O A. Is good for US companies involved in international trade O B. Is…

A: Devaluation of the currency means the currency of the domestic country is depreciated against the…

Q: Which of the following would increase the current account balance of the United States? O an…

A: The current account is a component of a country's balance of payments that tracks the flow of goods,…

Q: 1. What is the real exchange rates for each country? 2. Which countries have a premium value of the…

A: Exchange rate:It is the rate at which currencies are exchanged for another currency. It affects the…

Q: If the expected future exchange rate falls, the supply of U.S. dollars and the exchange rate O A.…

A: The measure that depicts the value of one currency being measured in terms of another currency to…

Q: Which one of the statements is FALSE in Paris Agreement? Select one: O a. Developed countries must…

A: The Paris agreement is an agreement on climate change. It was formed in order to limit/reduce global…

Q: A new country has been established on the moon and created a currency called cheesybits. Which of…

A: Answer: A transaction will be called a foreign exchange transaction if buyers and sellers are from…

Q: If the exchange rate is constant and U.S. exports increase, then in the foreign exchange market the…

A: In the international market, exports and imports of goods and services influence the relative demand…

Q: Refer to Table 6. If the exchange rate is $1 = 3 euros, then O the United States will import carrots…

Q: On the DD curve, exchange rate depreciation causes output to because it affects a component of…

A: The curve that depicts various quantities of goods and services that are being demanded by…

Q: Consider a country with a flexible exchange rate, and which initially has a current account surplus…

A: A floating (or flexible) rate regime is one within which a country's rate fluctuates in a very wider…

Q: Question 1 Minutes Needed to Make 1 Bushel of Wheat Pound of Beef Andia 24 Zardia 15 12 10 Refer to…

A: Opportunity cost shows the forgone units of one good in acquiring the other good. Opportunity cost…

Q: When there is political instability in another country, the United States can expect O an increase…

A: The political instability is when the government collapse due to any circumstance or not functioning…

Q: A short-run increase in government spending causes the currency to, and output to appreciate;…

A: when the expansionary fiscal policy occurs due to an increase in government spending, the demand for…

Q: Exchange rates are an important factor when doing business internationally. Please discuss: a.…

A: Exchange rate is the value of one currency relative to another. These exchange rates are flexible…

Q: In the U.S. balance of payments, foreign purchases of assets in the United States are a O debit, or…

A: The question is asking about the classification of foreign purchases of assets in the United States…

Q: The value of the currency of Country X appreciates relative to the currency of Country Y. How will…

A: Currency appreciation refers to an increase in the value of one currency relative to another. On the…

Q: What is the exports effect? The exports effect is the result that the lower the exchange rate, other…

A: Export refers to the selling of goods and services produced within the economy or by producers of…

Question

How will an increase in remittance flows to your country during the Christmas
Season affect the market for foreign exchange?
Select one:
O a.
Outward shift of the demand curve, real exchange rate rises and the
balance of trade rises
O b. Outward shift of the supply curve, real exchange rate falls and the balance
of trade falls
O c.
Inward shift of the supply curve, real exchange rate rises and the balance of
trade rises
O d. Inward shift of the demand curve, real exchange rate falls and the balance
of trade falls
е.
Inward shift of the demand curve, real exchange rate rises and the balance
of trade falls

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Answer

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Table 6 United States France Peas $3 3 euros Carrots $4 9 euros
A 216.
Please state why it’s wrong or uncertain if applicable
Consider avocado trading between you and nber. Your tree grows 100 this year and 10 next year.Nber's tree grows 20 this year and 50 next year.Let the equilibrium exchange rate be v. Consider a different scanerio: Your tree grows 100 this year and 10 next year.Nber's tree grows 20 this year and 60 next year.Let the equilibrium exchange rate be v'. Then v>v'. Hint: you can use your intuition to figure this out without any calculation. A. TrueB. False
Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. O fall. O remain unchanged.
Introduction to the foreign-currency exchange market
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
Which of the following is part of the accounting of balance of trade? O the money market account the current account the stock exchange O the capital gains tax