Question : 61) If Canadian demand for French wine increases, the supply : 1384545

61) If Canadian demand for French wine increases, the supply of Canadian dollars to the foreign-exchange market will ________ and the demand for euros will therefore ________.

A) decrease; decrease

B) decrease; increase

C) increase; decrease

D) increase; increase

E) increase; remain the same

62) The supply of Canadian dollars to the foreign-exchange market, which is also the demand for foreign currency, will increase if

A) tourism to Canada increases.

B) foreign demand for Canadian goods increases.

C) imports into Canada increase.

D) Canadian interest rates are high.

E) Canadian inflation rates are low.

63) Other things being equal, if the Canadian dollar appreciates, there will be a ________ in the demand for foreign imports, and the number of dollars offered in the foreign-exchange market will ________.

A) rise; rise

B) rise; fall

C) fall; rise

D) fall; fall

E) fall; remain constant

64) Suppose that in Canada we experience a rise in the Canadian dollar price of foreign exchange. In this circumstance, the dollar will have ________ and the exchange rate will have ________.

A) depreciated; fallen

B) depreciated; risen

C) appreciated; fallen

D) appreciated; risen

E) appreciated; depreciated

65) Suppose that in Canada we experience a fall in the Canadian dollar price of foreign exchange. In this circumstance, the dollar will have ________ and the exchange rate will have ________.

A) depreciated; fallen

B) depreciated; risen

C) appreciated; fallen

D) appreciated; risen

E) appreciated; remained the same

66) In a competitive foreign-exchange market between the dollar and the British pound, a price of pounds (in terms of dollars) above the free-market equilibrium would

A) result in the quantity of pounds demanded being greater than the quantity supplied.

B) indicate that some people who wish to purchase pounds will not be able to do so at the current exchange rate.

C) lead to an appreciation of the dollar.

D) result in the quantity of dollars supplied being greater than the quantity demanded.

E) lead to a depreciation of the dollar.

67) In a competitive foreign-exchange market between the Canadian dollar and the British pound, a price of pounds (in terms of dollars) below the free-market equilibrium would

A) result in the quantity of pounds supplied being greater than the quantity demanded.

B) indicate that all people who wish to purchase pounds will be able to do so at the current exchange rate.

C) lead to an appreciation of the dollar.

D) result in a sustained shortage of pounds.

E) lead to a depreciation of the dollar.

68) Consider the market in which Canadian dollars are exchanged for British pounds. An increased preference of Canadian consumers for British goods would

A) shift the supply-of-pounds curve to the left and lead to a rise in the exchange rate.

B) shift the demand-for-pounds curve to the right and lead to a rise in the exchange rate.

C) shift the supply-of-pounds curve to the right and lead to a fall in the exchange rate.

D) shift the demand-for-pounds curve to the left and lead to a fall in the exchange rate.

E) lead to a temporary excess supply of British pounds on the international currency market.

69) Consider the market in which Canadian dollars are exchanged for British pounds. An increased preference of British consumers for Canadian goods would

A) shift the supply-of-pounds curve to the left and lead to a rise in the exchange rate.

B) shift the demand-for-pounds curve to the right and lead to a rise in the exchange rate.

C) shift the supply-of-pounds curve to the right and lead to a fall in the exchange rate.

D) shift the demand-for-pounds curve to the left and lead to a fall in the exchange rate.

E) lead to a temporary excess demand for British pounds on the international currency market.

70) Consider the market in which Canadian dollars are exchanged for Chinese yuan (the Chinese currency). An increase in Chinese demand for Canadian resources would

A) shift the supply-of-yuan curve to the right and lead to an appreciation of the Canadian dollar.

B) shift the supply-of-yuan curve to the left and lead to an appreciation of the Canadian dollar.

C) shift the demand-for-yuan curve to the right and lead to a depreciation of the Canadian dollar.

D) shift the demand-for-yuan curve to the left and lead to an appreciation of the Canadian dollar.

E) have no effect on the foreign-exchange market.