The US and China are the two biggest economies of the world. Which of these situations willmost likely increase the value of the US dollar as it trades with China?a. China's GDP increases faster than USO b. China imports more from the US than it exports to the USO c. China exports more to the US than it imports from the USO d. China's exports increases sharply In the last few years, the contribution of investments to the Gross Domestic Product of Turkey hasbeen limited. How can the government of Turkey encourage more investments to increase theircontribution to GDP?O a. Decrease money supply by decreasing bank reserve requirementsO b. Decrease interest rates to encourage creditO c. Increase tax collections to limit aggregate demandO d. Increase aggregate demand by expansionary fiscal policy

1. Value of an Currency just like any other good increases with an increase in its demand. As in…

The US and China are the two biggest economies of the world. Which of these situations will most likely increase the value of the US dollar as it trades with China? O a. China's GDP increases faster than US O b. China imports more from the US than it exports to the US Oc. China exports more to the US than it imports from the US O d. China's exports increases sharply

The US and China are the two biggest economies of the world. Which of these situations will most likely increase the value of the US dollar as it trades with China? O a. China's GDP increases faster than US O b. China imports more from the US than it exports to the US Oc. China exports more to the US than it imports from the US O d. China's exports increases sharply

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What does it mean to describe the foreign-exchange market as an "over-the-counter market"? O A. The market consists of customers buying and selling in the foreign-exchange market directly. O B. The market consists of market makers linked together by computers. OC. The market consists of customers linked together by computers. O D. The market is a physical place where currencies are traded.
Which of the following are the major players in the foreign exchange market? O a. Corporates O b. Commercial banks O C Exchange brokers O d. Central bank of the country
A 216.
If Canadian exports of goods and services were $37 billion, imports of goods and services were $42 billion, transfers by Canadians to foreigners were $3 billion and transfers from foreigners to Canadian citizens were $2 billion, then the current account balance would be O A. $4 billion. O B. - $6 billion. O C. $8 billion O D. $6 billion. O E. - $4 billion.
2
Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. O fall. O remain unchanged.
The current account is the record of receipts from other countries. other countries, minus official lending to; record of foreign investment in; interest and rents other countries, plus the net amount of O A. record of foreign investment in; transfer payments to; capital O B. O C. O D. the sale of goods and services to; payments for goods and services bought from; interest and transfers payments for goods and services bought from; the sale of goods and services to; wages and transfers received from and paid to
QUESTION 2 In the long run, an increase in the nominal exchange rate is likely to lead to Note: Multiple answers are possible. O A. an increase in exports ) B. a decrease in exports C. an increase in imports D. a decrease in imports
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
Figure 13-2 Real Interest Rate World interest rate, fo Real Exchange Rate E₁ 토 Supply of Loara ble Funds Demand for Loa rable Funds Quantity of Loanable Funds Supply of Canadian Dollars (S-1) Do Quantity of Dollars Refer to the Figure 13-2. If the economy were initially in equilibrium at r0 and EO and the government removed import quotas, what would happen to the exchange rate? a. It would appreciate to El. b. It would appreciate to E2. C. It would depreciate to El. d. It would depreciate to E2.