Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Chapter 11, Problem 11.3IP
To determine
The effects of pond devaluation on tourism and bank profits.
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which of the following cause the public to expect a depreciation of domestic currency? (there are more than one answer)
An increase in imports demand
an increase in productivity
an increase in tariff
an increase in export demand
an increase in domestic price level
Display graphically changes in the current value of domestic currency, if the domestic currency depreciation at a significant rate is expected.
Which of the followings cause the public to expect a depreciation of domestic currency?(There are more than one answer, NO partial credit).
Question 22 options:
An increase in productivity.
An increase in imports demand.
An increase in tariff.
An increase in export demand.
An increase in domestic price level.
Chapter 11 Solutions
Managerial Economics: A Problem Solving Approach
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Similar questions
- Define currency depreciationarrow_forwardwhich of the following cause a depreciation of domestic currency in the long run? (There are more than one answer) An increase in domestic price level An increase in productivity An increase in imports demand An increase in tariff An increase in export demandarrow_forwardTrue/False Import and export of machines are recorded in capital account of the balance of payment account.arrow_forward
- All foreign transactions are denominated in the foreign currency of concern. This firm would ____ a stronger dollar and would ____ a weaker dollar. be unaffected by; benefit from be unaffected by; be adversely affected by benefit from; be unaffected by benefit from; be adversely affected byarrow_forwardAll else equal, depreciation of the Mexican peso relative to the U.S. dollar would make a trip by: a Mexican to the United States less expensive. an Australian to the United States more expensive. an American to Mexico less expensive. an American to Mexico more expensive.arrow_forwardExplain why the Cedi continues to depreciate against most major international currencies.arrow_forward
- Other things being equal, an increase in a country's interest rates will cause its currency to depreciate. True False If the U.S. dollar had a value equal to 1 euro a year ago and is now worth 1.2 euros, we say that the euro has appreciated over the past year. True Falsearrow_forwardImports of goods and services is not a source of demand for foreign exchange True/Falsearrow_forwardBased on the latest statistics published by Bank Negara Malaysia, Ringgit Malaysia has depreciated by 4.9% against US dollar during the first quarter of year 2020. Explain how the currency depreciation will affect export, import and the balance of trade of the country.arrow_forward
- Explain the difference between the appreciation of domestic currency and depreciation of domestic currencyarrow_forwardAn increase in the demand for US goods imported into South africa will have the following impact in the South African market: The increased demand for US goods will lead to a decrease in the demand for dollars. True Falsearrow_forwarddiscuss Appreciation and Depreciation of Currenciesarrow_forward
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