Question 1

If US consumers want to buy Chinese goods,they will

Accepted Answer

A)  buy Yuans to sell US Dollars
B)  Sell Yuans to buy US Dollars
C)  Demand Yuan
D)  Both a and cE) A) and D)
F) None of the above

Question 2

The purchasing power parity predicts that if US price level rises relative to the Mexico price level,then

Accepted Answer

A)  Dollar value will rise relative to the peso
B)  Dollar value will fall relative to the peso
C)  There is no effect on either currency
D)  PPP predicts price level will normalize in the long-runE) A) and B)
F) A) and C)

Question 3

All these factors affect a country's exchange rates,except

Accepted Answer

A)  Inflation
B)  Interest rates
C)  Employment
D)  Price levelsE) A) and B)
F) None of the above

Question 4

Currency devaluations help suppliers because they make exports ________ expensive in the _____________ currency.

Accepted Answer

A)  Less;domestic
B)  Less;foreign
C)  More;domestic
D)  More;foreignE) A) and B)
F) C) and D)

Question 5

When interest rates go up,people are

Accepted Answer

A)  more likely to borrow
B)  less likely to borrow
C)  does not affect a person's consumption
D)  None of the aboveE) None of the above
F) A) and C)

Question 6

Holding other things constant,a depreciation of the US Dollar to the Kenyan Shilling might cause the demand for Shilling to _____________ and the supply for Shilling to __________.

Accepted Answer

A)  Increase;decrease
B)  Increase,increase
C)  Decrease;Increase
D)  Decrease;DecreaseE) A) and B)
F) All of the above

Question 7

Holding other things constant,an increase in the inflation rate in US compared to the Chinese economy may cause the demand for dollar to _____________ and the supply for dollar to __________.

Accepted Answer

A)  Increase;decrease
B)  Increase,increase
C)  Decrease;Increase
D)  Decrease;DecreaseE) A) and D)
F) All of the above

Question 8

When interest rates go down,people are

Accepted Answer

A)  more likely to borrow
B)  less likely to borrow
C)  does not affect a person's consumption
D)  None of the aboveE) All of the above
F) B) and C)

Question 9

The intersection between demand of US dollar and the supply of US dollar is known as

Accepted Answer

A)  Inflation rate
B)  Exchange rate
C)  Price
D)  QuantityE) All of the above
F) C) and D)

Question 10

A term to describe one currency in terms of another is

Accepted Answer

A)  Interest rates
B)  Market price
C)  Inflation rate
D)  Exchange rateE) A) and B)
F) C) and D)

Exam 11: Foreign Exchange, trade, and Bubbles

All these factors affect a country's exchange rates,except

Correct Answer
verified

A term to describe one currency in terms of another is

Correct Answer
verified

Currency devaluations help suppliers because they make exports expensive in the _____ currency.

Correct Answer
verified

The purchasing power parity predicts that if US price level rises relative to the Mexico price level,then

Correct Answer
verified

Holding other things constant,an increase in the inflation rate in US compared to the Chinese economy may cause the demand for dollar to ___ and the supply for dollar to .

Correct Answer
verified

When interest rates go up,people are

Correct Answer
verified

When interest rates go down,people are

Correct Answer
verified

Holding other things constant,a depreciation of the US Dollar to the Kenyan Shilling might cause the demand for Shilling to ___ and the supply for Shilling to .

Correct Answer
verified

If US consumers want to buy Chinese goods,they will

Correct Answer
verified

The intersection between demand of US dollar and the supply of US dollar is known as

Correct Answer
verified

Exam 11: Foreign Exchange, trade, and Bubbles

All these factors affect a country's exchange rates,except

Correct AnswerverifiedShow Answer

A term to describe one currency in terms of another is

Correct AnswerverifiedShow Answer

Currency devaluations help suppliers because they make exports ________ expensive in the _____________ currency.

Correct AnswerverifiedShow Answer

The purchasing power parity predicts that if US price level rises relative to the Mexico price level,then

Correct AnswerverifiedShow Answer

Holding other things constant,an increase in the inflation rate in US compared to the Chinese economy may cause the demand for dollar to _____________ and the supply for dollar to __________.

Correct AnswerverifiedShow Answer

When interest rates go up,people are

Correct AnswerverifiedShow Answer

When interest rates go down,people are

Correct AnswerverifiedShow Answer

Holding other things constant,a depreciation of the US Dollar to the Kenyan Shilling might cause the demand for Shilling to _____________ and the supply for Shilling to __________.

Correct AnswerverifiedShow Answer

If US consumers want to buy Chinese goods,they will

Correct AnswerverifiedShow Answer

The intersection between demand of US dollar and the supply of US dollar is known as

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Currency devaluations help suppliers because they make exports expensive in the _____ currency.

Correct Answer
verified

Correct Answer
verified

Holding other things constant,an increase in the inflation rate in US compared to the Chinese economy may cause the demand for dollar to ___ and the supply for dollar to .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Holding other things constant,a depreciation of the US Dollar to the Kenyan Shilling might cause the demand for Shilling to ___ and the supply for Shilling to .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified