Question :
11) Refer to Figure 19-10. Europe suffers a recession. Assuming : 1244943
11) Refer to Figure 19-10. Europe suffers a recession. Assuming all else remains constant, this would be represented as a movement from ________.
A) D to A
B) C to D
C) B to C
D) A to D
E) A to B
12) Refer to Figure 19-10. Currency speculators believe that the value of the euro will increase relative to the dollar. Assuming all else remains constant, how would this be represented?
A) Supply would decrease, demand would decrease and the economy moves from B to C to D.
B) Supply would increase, demand would decrease and the economy moves from C to B to A.
C) Supply would decrease, demand would increase and the economy moves from A to D to C.
D) Supply would increase, demand would increase and the economy moves from D to A to B.
13) Refer to Figure 19-10. Suppose that the U.S. government deficit causes interest rates in the United States to rise relative to those in the European Union. Assuming all else remains constant, how would this be represented?
A) Supply would decrease, demand would decrease and the economy moves from B to C to D.
B) Supply would increase, demand would decrease and the economy moves from C to B to A.
C) Supply would decrease, demand would increase and the economy moves from A to D to C.
D) Supply would increase, demand would increase and the economy moves from D to A to B.
14) Refer to Figure 19-10. The appreciation of the dollar is represented as a movement from
A) B to A.
B) D to C.
C) C to B.
D) C to A.
15) Refer to Figure 19-10. The depreciation of the euro is represented as a movement from
A) D to A.
B) C to D.
C) B to C.
D) B to A.
16) Refer to Figure 19-10. Italians cut back on smoking and cut their demand for American cigarettes in half. Assuming all else remains constant, this would be represented as a movement from
A) B to A.
B) D to C.
C) B to C.
D) A to D.
17) Refer to Figure 19-10. Europe experiences an economic boom. Assuming all else remains constant, this would be represented as a movement from
A) D to A.
B) D to C.
C) C to B.
D) B to A.
18) Refer to Figure 19-10. Currency speculators believe that the value of the euro will decrease relative to the dollar. Assuming all else remains constant, how would this be represented?
A) Supply would decrease, demand would decrease and the economy moves from B to C to D.
B) Supply would increase, demand would decrease and the economy moves from C to B to A.
C) Supply would decrease, demand would increase and the economy moves from A to D to C.
D) Supply would increase, demand would increase and the economy moves from D to A to B.
19) Refer to Figure 19-10. Suppose that the U.S. government deficit decreases, causing interest rates in the United States to fall relative to those in the European Union. Assuming all else remains constant, how would this be represented?
A) Supply would decrease, demand would decrease and the economy moves from B to C to D.
B) Supply would increase, demand would decrease and the economy moves from C to B to A.
C) Supply would decrease, demand would increase and the economy moves from A to D to C.
D) Supply would increase, demand would increase and the economy moves from D to A to B.
20) If there is currently a surplus of dollars, which of the following would you expect to see in the foreign exchange market?
A) The dollar will appreciate.
B) The dollar will depreciate.
C) There will be a decrease in the demand for dollars.
D) There will be a decrease in the supply of dollars.
