Question :
31) When Americans increase their demand for Japanese goods
A) the : 1244945
31) When Americans increase their demand for Japanese goods
A) the demand for dollars will rise, and the demand for yen will rise.
B) the demand for dollars will fall, and the demand for yen will rise.
C) the supply of dollars will rise, and the demand for yen will rise.
D) the supply of dollars will fall, and the demand for yen will fall.
32) If the dollar appreciates, how will aggregate demand in the United States be affected?
A) Aggregate demand will shift to the right as exports increase.
B) Aggregate demand will shift to the right as imports increase.
C) Aggregate demand will shift to the left as imports increase.
D) Aggregate demand will shift to the left as exports increase.
33) What effect does a depreciation of the dollar have on real GDP in the United States in the short run?
A) Real GDP will fall.
B) Real GDP will rise.
C) Real GDP will be unaffected by the depreciation of the dollar.
D) Real GDP will be unchanged, but nominal GDP will rise.
34) The recession of 2007-2009 decreased the demand for imports in Japan, which caused the ________ curve for the yen to ________, increasing the exchange rate and the value of the yen.
A) supply; right
B) supply; left
C) demand; right
D) demand; left
35) An appreciating yen makes Japanese products
A) more expensive in foreign markets.
B) less expensive in foreign markets.
C) more expensive in the Japanese market.
D) more expensive in both foreign markets and the Japanese market.
36) If a country has a fixed exchange rate
A) the equilibrium exchange rate in that market does not respond to changes in supply and demand for currency.
B) central banks have more control over real GDP in the economy.
C) central banks must buy and sell their holdings of currencies to maintain a given exchange rate.
D) the exchange rate is allowed to fluctuate in response to changes in the supply and demand for currency.
37) When exchange rates are not determined in the market but are instead set by a country’s central bank, we say that the country’s exchange rate is
A) flexible.
B) fixed.
C) a nominal exchange rate.
D) a real exchange rate.
38) How does a decrease in value of a country’s currency relative to other currencies affect its balance of trade?
A) A decrease in value of a country’s currency relative to other currencies raises imports, reduces exports, and reduces the balance of trade.
B) A decrease in value of a country’s currency relative to other currencies reduces imports, raises exports, and reduces the balance of trade.
C) A decrease in value of a country’s currency relative to other currencies reduces imports, raises exports, and increases the balance of trade.
D) A decrease in value of a country’s currency relative to other currencies raises imports, reduces exports, and increases the balance of trade.
39) In international exchange markets, a rise in interest rates in the United States will cause the demand for dollars to ________ and the supply of dollars to ________.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
40) Ceteris paribus, a rise in interest rates in the United States will cause the yen price of the dollar in international exchange markets to ________. I.e., the dollar ________ in value against the yen.
A) increase; appreciates
B) increase; depreciates
C) decrease; depreciates
D) decrease; appreciates
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