foreigners want to invest more in the American economy______? Group of answer choices 1The exchange rate increases (the US $ appreciates). 2The exchange rate is unaffected. 3The exchange rate decreases (the US $ depreciates). 4The exchange rate could decrease (the US $ depreciates) or it could increase (the US $ appreciates).

foreigners want to invest more in the American economy______? Group of answer choices 1The exchange rate increases (the US $ appreciates). 2The exchange rate is unaffected. 3The exchange rate decreases (the US $ depreciates). 4The exchange rate could decrease (the US $ depreciates) or it could increase (the US $ appreciates).

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter29: International Finance

Section: Chapter Questions

Problem 8P

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Similar questions

If the foreign interest rate increases and U.S. interest rates also increases_______?Group of answer choices 1The exchange rate increases (the US $ appreciates). 2The exchange rate is certainly unaffected and remains the same. 3The exchange rate decreases (the US $ depreciates). 4The exchange rate could decrease (the US $ depreciates) or it could increase (the US $ appreciates).
If the demand for the goods that we export increases______?Group of answer choices 1The exchange rate is unaffected. 2The exchange rate could decrease (the US $ depreciates) or it could increase (the US $ appreciates). 3The exchange rate increases (the US $ appreciates). 4The exchange rate decreases (the US $ depreciates).
If the productivity or the productivity of the workforce decreases_______?Group of answer choices 1The exchange rate decreases (the US $ depreciates). 2The exchange rate is unaffected. 3The exchange rate increases (the US $ appreciates). 4The exchange rate could decrease (the US $ depreciates) or it could increase (the US $ appreciates).
If the foreign interest rate increases________?Group of answer choices 1The exchange rate is unaffected. 2The exchange rate could decrease (the US $ depreciates) or it could increase (the US $ appreciates). 3The exchange rate decreases (the US $ depreciates). 4The exchange rate increases (the US $ appreciates).
In our pretend world there are two countries - Chile and Switzerland - that are engaged in trade. The firm Switzerland Chocolates Express sells Boxes of chocolate (a good) in Chile. Each Box of Chocolates sells for 6500 Chilean pesos in Chile. In Switzerland, each box of chocolates 11 Swiss Franc to produce. Assume that the firm has 1 million boxes of chocolate to sell. How much money (in Swiss Franc) would the firm make (or lose) on the sale at the following exchange rates: Rate 1: 550 Pesos per Swiss Franc Rate 2: 0.0015 Swiss Franc Per Chilean Peso
A new country has been established on the moon and created a currency called cheesybits. Which of the following does not involve a foreign exchange transaction? OA) Luna lives on the moon and wants to travel to visit relatives in Japan. B) Han is visiting the moon and wants to eat at his favorite restaurant, the Moonglow Bar and Grill. C) Moonrock corporation needs new mining equipment that it buys from a manufacturer in Russia. D) Moonbeam Incorporated, the largest company on the moon, sells building products for houses on the moon.
In the foreign exchange market, when the U.S. interest rate rises, the supply of dollars ________ and the foreign exchange rate ________. A. decreases; rises B. increases; falls C. increases; rises D. increases; does not change E. decreases; falls
If the exchange rate between the United States dollar and the Indian rupee changes from $1=60 rupees to $1=10 rupees, ceteris paribus, one would anticipate that ___________. Group of answer choices A) India’s exports to the United States increase B) the current account in the United States’ balance of payments stays the same C)the trade deficit in the United States increases D)the United States’ imports from India increase E)the United States’ exports to India increase
The graph shows the supply curve of Canadian dollars. Draw a new supply curve that shows the effect of a rise in the expected future exchange rate. Label it. A change in the expected future exchange rate changes the supply of Canadian dollars________, and a change in Canadian demand for imports changes the supply of Canadian dollars O A. today; today B. in the future; today C. today; in the future D. in the future; in the future 120 MacBook Pro 110 100- 90- 80- 70- Exchange rate (Canadian cents per Canadian dollar) Click the graph, choose a tool in the palette and follow the instructions to create your graph. So 70 80 90 100 10 20 30 40 50 60 Quantity (billions of Canadian dollars per day) >>> Draw only the objects specified in the question.
( ) 14) According to the absorption approach what happens to China's trade balance following an increase in domestic spending ? 根据吸收论,中国国内支出增加对贸易余额将产生什么影响? A. becomes worse B. improves C. becomes unchangeable D. J curve ( ) 15) What happens to China's trade balance following an increase in income under the monetary approach? 根据货币论,中国的国民收入水平增加对贸易余额将产生什么影响? A. becomes worse B. improves C. becomes unchangeable D. J curve
(1) a. If the exchange rate changes from $1.70 per British pound (₤1) to $1.72 per ₤1, has the pound (₤) appreciated or depreciated? Has the dollar appreciated or depreciated? b. What happens to the ₤-price that British residents pay for a $500 U.S. export good due to the exchange rate change above? c. What happens to the $-price that U.S. residents pay for a ₤1200 import good from Britain? d. How do these changes affect the economic welfare of U.S. exporters and U.S. importers? (2) Suppose that the euro (€) appreciates from $1.00 per €1 to $1.20 per €1. Determine whether the underlined individuals listed below would see that appreciation as a good or a bad thing. a. A U.S. business buys €10,000 of chemicals from a German company. b. An Italian clothing company buys $100,000 of leather from a U.S. leather maker. c. A U.S. resident has a retirement account totaling €500,000 in a German bank. d. A U.S. company must make an interest payment of €25,000 to the French bank from which it…
Consider the following: Country Jeans Corn (Pairs per hour of labor) (Bushels per hour of labor) Brazil 12 24 Chile 8. 32 If these two countries were to trade, a possible exchange rate would be 2 bushels of corn to 1/3 pair of jeans 2 bushels of corn to 6 pairs of jeans 6 bushels of corn to 2 pairs of jeans 1/3 bushels of corn to 2 pair of Jeans