When the dollar appreciates, U.S. Select one: O a. exports and imports increase. O b. exports decrease, while imports increase. C. exports increase. while imports decrease. O d. exports and imports decrease.
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- If the Americans increase the quota on Japanese electronic devices, the dollar tends to... O A. appreciate B. depreciate O C. appreciate then depreciate O D. be stableWhen the value of the dollar rises against foreign currencies, exports O rise; fall O none of the other answers are correct. O rise; rise fall; rise O fall; fall and importsIf countries A and B are the only two countries in the world, then if the currency of country A appreciates, the currency of country B... O a. May appreciate or depreciate, depending on the elasticity of demand for the exports of country A. O b. May appreciate or depreciate, depending on the volume of trade between the two countries. O c. Must appreciate. O d. Can appreciate relative to other countries. O e. Must depreciate.
- Holding other things constant, an appreciation of anation’s currency causesa. exports to rise and imports to fall.b. exports to fall and imports to rise.c. both exports and imports to rise.d. both exports and imports to fall.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.On the foreign exchange market, an increase in a country's exchange rate O a. decreases the demand for its currency and shifts the demand curve leftward. O b. decreases the quantity demanded of its currency and leads to a movement up along the demand curve. decreases the demand for its currency and shifts the demand curve rightward. O d. increases the quantity demanded of its currency and leads to a movement down along the demand curve. O . increases the quantity demanded of its currency and leads to a movement up along the demand curve.
- The dollar depreciates against foreign currencies. This makes foreign-produced goods for Americans and U.S.-produced goods for foreigners. As a result, U.S. fall and U.S. rise. more expensive; cheaper; imports; exports O cheaper; more expensive; imports; exports cheaper; more expensive; exports; imports more expensive; cheaper; exports; importsA strong U.S. dollar means that U.S. goods exported abroad will cost: O A. less in foreign countries and foreign goods imported will cost less in the United States. B. less in foreign countries and foreign goods imported will cost more in the United States. C. more in foreign countries and foreign goods imported will cost more in the United States. D. more in foreign countries and foreign goods imported will cost less in the United States.Determine which account of the Balance-of-Payments is affected the following transaction: A local parent sends 500 Euros to his/her son who is studying engineering at a German university. Select one: O a. Capital Account Foreign Direct Investment O b. Current Account Transfers O c. Capital Account Portfolio Investment O d. Current Account Imports O e. Current Account - Exports re to search
- A decrease in the real exchange rate has the effect of O a. decreasing demand O b. Increasing net export O c. Deficit in trade O d. Decreasing net exportHow will the following events affect exports of a country, ceteris paribus? increase decrease no change Domestic income O O level declines Foreign income level declines Domestic price level declines Foreign price level declines Exchange rate goes up (or domestic currency depreciates) O оо O O O O O O O O O OIf the exchange rate is constant and U.S. exports increase, then in the foreign exchange market the O a. quantity of U.S. dollars demanded decreases. O b. quantity of U.S. dollars demanded increases. O c. supply of U.S. dollars increases. O d. demand for U.S. dollars decreases. О е. demand for U.S. dollars increases.