Question :
11) Refer to Figure 20.3. Which of the following will : 1381292
11) Refer to Figure 20.3. Which of the following will shift the supply of pounds from S1 to S0?
A) an increase in U.S. income
B) an increase in the British price level
C) a decrease in the British price level
D) a decrease in British income
12) Refer to Figure 20.3. Which of the following will shift the supply of pounds from S0 to S1?
A) an increase in U.S. income
B) a decrease in British income
C) an increase in the British price level
D) a decrease in the U.S. price level
13) Refer to Figure 20.3. Which of the following will shift the supply of pounds from S1 to S0?
A) an increase in U.S. income
B) a decrease in the British price level
C) British people wanting to buy more U.S. goods and assets
D) a decrease in British income
14) Income decreases in the United States. This will cause a(n)
A) increase in the supply of pounds.
B) decrease in the supply of pounds.
C) increase in the demand for pounds.
D) decrease in the demand for pounds.
15) The supply of dollars in the foreign exchange market is likely to be upward sloping because as the price of a dollar (the exchange rate) falls,
A) Americans demand fewer foreign goods because these goods have become more expensive to American consumers.
B) Americans demand more foreign goods because these goods have become less expensive to American consumers.
C) foreigners demand more American goods because these goods have become less expensive to foreign consumers.
D) foreigners demand more foreign goods because these goods have become more expensive to foreign consumers.
16) If the profitability of investment in the United States increases, we would expect
A) the demand for dollars to increase.
B) the demand for dollars to decrease.
C) the supply of foreign currency in the United States to decrease.
D) the demand for foreign currency in the United States to increase.
17) More German companies start to invest in the United States. This will lead to a(n)
A) decrease in the demand for dollars and an increase in the demand for euro.
B) increase in the supply of dollars and a decrease in the demand for euro.
C) increase in the demand for dollars and a decrease in the supply of euro.
D) increase in the demand for dollars and an increase in the supply of euro.
18) The rise in value of the Mexican peso relative to the Canadian dollar is a(n)
A) depreciation of the peso.
B) appreciation of the peso.
C) weakening of the peso.
D) floating of the peso.
19) Suppose the exchange rate between the United States and Japan changed from $1 =150 yen to $1 = 140 Yen, which of the following statements is TRUE?
A) the dollar depreciated
B) the yen depreciated
C) the price of yen in dollars decreased
D) the price of dollars in yen increased
20) Under a system of floating exchange rates, an excess demand for a particular currency will lead to a(n)
A) depreciation of that currency.
B) long-term shortage of that currency.
C) appreciation of that currency.
D) long-term surplus of that currency.
