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 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).

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter29: International Finance

Section: Chapter Questions

Problem 8P

See similar textbooks

Similar questions

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 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 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).
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).
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.
(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…
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
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.
a. If the exchange rate changes from $1.70 per British pound (₤1) to $1.68 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. 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…
If the exchange rate between the United States dollar and the Indian rupee changes from $1=60 rupees to $1=10 rupees, ceteris paribus, one would anticipate that ___________. Group of answer choices A) India’s exports to the United States increase B) the current account in the United States’ balance of payments stays the same C)the trade deficit in the United States increases D)the United States’ imports from India increase E)the United States’ exports to India increase
Question 7 According to, "Exchange Rates-Economics U$A," gold was exported from the USA in the early 1930s because: O It could command a higher price overseas. US consumers preferred silver jewelry to gold jewelry. People believed that the US would soon abandon the gold standard. US interest rates were too high relative to its trading partners. Question 8 According to, "Exchange Rates-Economics U$A,"after the UK abandoned the gold standard the value of the British pound and this caused UK exports to and imports to fall, fall, rise fall, fall, fall Orise, fall, rise fall, rise, fall --- -11'
A change in the euro-dollar exchange rate from $1 per epro to $2 per euro would price of German goods, the number of German goods that would be demanded in the U.S. the U.S. O decrease; reducing. O decrease; increasing. O increase; reducing. O increase; increasing.