Question : 31) The quantity of U.S. dollars supplied in the foreign : 1228079

31) The quantity of U.S. dollars supplied in the foreign exchange market is

A) fixed at any given exchange rate.

B) positively related to the exchange rate.

C) negatively related to the exchange rate.

D) unrelated to the exchange rate.

E) the same as the quantity of for U.S. dollars demanded.

32) In the foreign exchange market, an increase in the exchange rate leads to

A) an increase the quantity of dollars supplied and a movement along the supply curve of dollars.

B) an increase in the quantity of dollars demanded and a movement along the demand curve for dollars.

C) an increase the quantity of dollars supplied and no movement along the supply curve of dollars.

D) an increase in the quantity of dollars demanded and no movement along the demand curve for dollars.

E) a decrease the quantity of dollars supplied and a movement along the supply curve of dollars.

33) When the exchange rate between the U.S. dollar and the euro changes from 1.30 euros per dollar to 1.00 euro per dollar the dollar has ________ and European goods have become ________ to people in the United States so that quantity of U.S. dollars supplied ________.

A) depreciated; cheaper; increases

B) depreciated; more expensive; decreases

C) depreciated; cheaper; decreases

D) appreciated; more expensive; decreases

E) appreciated; cheaper; increases

34) As the U.S. exchange rate ________, the price of U.S. imports increases and the quantity supplied of dollars ________.

A) falls; increases

B) rises; increases

C) falls; decreases

D) rises; decreases

E) falls; does not change

35) Other things remaining the same, as U.S. imports increase, the quantity of

A) U.S. dollars demanded increases.

B) foreign currency demanded decreases.

C) U.S. dollars supplied decreases.

D) foreign currency demanded increases.

E) foreign currency supplied increases.

36) In the foreign exchange market, the demand for dollars decreases and the demand curve shifts leftward if the

A) U.S. interest rate differential increases.

B) expected future exchange rate rises.

C) U.S. interest rate differential decreases.

D) U.S. exchange rate rises.

E) U.S. exchange rate falls.

37) The U.S. interest rate has ________ on the supply of dollars and has ________ on the demand for dollars.

A) no effect; no effect

B) no effect; an effect

C) an effect; no effect

D) an effect; an effect

E) an effect sometimes; an effect sometimes

38) In the foreign exchange market, the demand for dollars increases and the demand curve shifts if the

A) U.S. interest rate differential increases.

B) expected future exchange rate falls.

C) U.S. interest rate differential decreases.

D) U.S. exchange rate rises.

E) U.S. exchange rate falls.

39) Everything else the same, in the foreign exchange market which of the following increases the demand for U.S. dollars and shifts the demand curve rightward?

A) The Japanese interest rate rises.

B) The expected future exchange rate falls.

C) The U.S. interest rate rises.

D) The U.S. exchange rate rises.

E) The U.S. exchange rate falls.

40) If the U.S. interest rate differential rises, then the effect in the foreign exchange market on the demand for dollars is that the

A) quantity of dollars demanded decreases.

B) quantity of dollars demanded increases.

C) demand for dollars increases.

D) demand for dollars decreases.

E) demand for dollars does not change and the quantity of dollars demanded also does not change.