The accelerator theory of investment says that induced investment is determined by Select one: a. the rate of exchange of national income. b. expectations. c. the level of national income. d. the level of aggregate demand. When the value of the British pound changes from $150 to $135, the pound has and the euro dollar has Select one: a. appreciated; appreciated b. appreciated; depreciated c. depreciated; appreciated d. depreciated; depreciated

The accelerator theory of investment says that induced investment is determined by Select one: a. the rate of exchange of national income. b. expectations. c. the level of national income. d. the level of aggregate demand. When the value of the British pound changes from $150 to $135, the pound has and the euro dollar has Select one: a. appreciated; appreciated b. appreciated; depreciated c. depreciated; appreciated d. depreciated; depreciated

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter31: Open-Economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 4CQQ

See similar textbooks

Similar questions

If a nation’s currency doubles in value on foreignexchange markets, the currency is said to_________, reflecting a change in the _________exchange rate.a. appreciate; nominalb. appreciate; realc. depreciate; nominald. depreciate; real
Time left 0:56 Currently, It takes two Belize dollars to buy a U.S. dollar. If that number were to rise to three, then the Belize currency would have (appreclated, depreclated) and It would be (more, less) expensive for American tourlsts to vacation In Bellze. Select one: a. depreclated; more O b. depreciated; less. Oc. appreciated; more. d. appreclated; less. Next page
If the U.S. interest rate rises, the exchange rate value of the dollar ________ and net exports ________. a. rises; increase b. rises; decrease c. falls; increase d. falls; decrease
The exchange rate between the U.S. dollar and the British pound starts at $1 = £0.5. It then changes to $1 = £0.75. Given this change, we would say that the U.S. dollar has while the British pound has . a. Depreciated; appreciated. b. Depreciated; depreciated. c. Appreciated; depreciated. d. Appreciated; appreciated
5. When the official dollar price of a foreign currency is set below its equilibrium level, the dollar a. is undervalued. b. is devalued. C. has been appreciated. d. is overvalued. e. is revalued. Thanks
E1 The higher the value of e, the ______________(More or less) units of foreign currency a dollar buys. When a nominal exchange rate goes up, we say the domestic currency is _________(appreciating or depreciating) against the foreign currency. When a nominal exchange rate goes down, we say that the domestic currency is _________(depreciating or appreciating) against the foreign currency.
Many U.S. business leaders argue that the current state of U.S. net exports is the result ofa. U.S. export subsidies.b. free trade policies of foreign governments.c. unproductive U.S. workers.d. unfair foreign competition.
Solve this early but correctly. Explain I upvote
QUESTION 8 Covered interest rate parity differs from uncovered interest rate parity in the following way: a. Instead of the domestic, interest rate, covered interest rate parity uses the foreign interest rate. b. Instead of the foreign interest rate, covered interest rate parity uses the domestic interest rate. Oc. Instead of the expected nominal exchange rate, covered interest rate parity uses the forward exchange rate. d. Instead of the forward nominal exchange rate, covered interest rate parity uses the expected exchange rate.
7. A weak home currency may result in the following except: A. Increased exports. В. Decreased imports. C. Lower domestic inflation. D. Reduced unemployment.
28. Assuming the exchange rate of the US$ to Mexican Peso (MXN) changes from US$1 MXN 20.44 to US$1 = MXN 22. The value of the US currency has _ in value and that %3D US exports to Mexico will appreciated ; increase depreciated ; increase depreciated ; decrease appreciated ; decrease
When the real exchange rate for the dollar appreciates, U.S. goods become A. more expensive relative to foreign goods, which makes exports fall and imports rise. B. less expensive relative to foreign goods, which makes exports rise and imports fall. C. more expensive relative to foreign goods, which makes exports rise and imports fall. D. less expensive relative to foreign goods, which makes exports fall and imports rise.