Decrease in The Exchange Rate Value
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
Decrease in The Exchange Rate Value
Question 19 of 25 2.0 Points Other fundamental things equal, a decrease in the exchange rate value.
Question 19 of 25
2.0 Points
Other
fundamental things equal, a decrease in the exchange rate value of the
domestic currency will make domestic goods:
- to
be demanded more internationally.B.
less competitive in the international markets.C.
less expensive in the domestic market.
- less expensive to produce.
Question 20 of 25
2.0 Points
Other
fundamental things equal, an increase in the exchange rate value of the
domestic currency will cause the current account to:A.
fluctuate initially.B.
equal the official settlements balance.C.
move toward a long-run surplus.
- move toward a deficit.
Question 21 of 25
2.0 Points
Under a
floating exchange rate regime, an expansion in the money supply will:A.
induce financial capital to leave the country.B.
attract financial capital into the country.C.
have no effect on financial account balance.
- cause a surplus in the official settlements
balance.Question 22 of 25
2.0 Points
Under a
floating exchange rate regime, the domestic currency will normally depreciate
if the money supply:A.
contracts.B.
expands.C.
does not change with the change in the exchange rates.
- is managed to keep the country’s inflation
rate steady.Question 23 of 25
2.0 Points
Under a
floating exchange rate regime, following an expansion in the money supply,
the change in the value of domestic currency is most likely to:A.
increase demand for imports.B.
increase demand for exports.C.
lower the real product.
- initiate foreign capital inflow.
Question 24 of 25
2.0 Points
In Figure, the move from point A to B is caused by
A.
expansionary monetary policy.B.
expansionary fiscal policy.
- contractionary monetary policy.
- contractionary fiscal policy.
Question 25 of 25
2.0 Points
In figure, the shift of the FE curve from FE0 to FE1 was
caused by
- a
contractionary monetary policy.B.
official intervention in the foreign exchange market.
- an
improvement in current account position.- an appreciation of the country’s
currency.
RUBRIC
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