Question : 11) Refer to Figure 19-6.  Europe suffers a recession.   Assuming : 1267010

 

11) Refer to Figure 19-6.  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 19-6.  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 19-6.  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) 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.

15) Currency traders expect the dollar to appreciate.  What impact will this have on equilibrium in the foreign exchange market?

A) The dollar will appreciate, and the equilibrium quantity of dollars will decrease.

B) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will decrease.

C) The dollar will appreciate, and the equilibrium quantity of dollars will increase.

D) The dollar will appreciate, and the change in the equilibrium quantity of dollars exchanged cannot be determined.

16) Which of the following would cause the dollar to appreciate?

A) an increase in the demand for dollars

B) a decrease in the demand for dollars

C) an increase in the supply of dollars

D) an increase in the demand for imports from foreign countries

17) An increase in the demand for American-made goods will

A) increase the supply of dollars on the foreign exchange market.

B) decrease the supply of dollars on the foreign exchange market.

C) increase the demand for dollars on the foreign exchange market.

D) decrease the demand for dollars on the foreign exchange market.

18) If the exchange rate changes from $2.00 = £1 to $2.01 = £1 then

A) the dollar has depreciated.

B) the dollar has appreciated.

C) the British pound has depreciated.

D) the British pound has stayed constant in value.

19) If the exchange rate changes from $1.45 = 1 euro to $1.37 = 1 euro, then

A) both the euro and dollar have appreciated.

B) both the euro and dollar have depreciated.

C) the euro has appreciated and the dollar has depreciated.

D) the euro has depreciated and the dollar has appreciated.

20) An increase in capital inflows will

A) increase net foreign investment.

B) increase capital outflows.

C) decrease capital outflows.

D) increase the equilibrium exchange rate.

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more