7. A weak home currency may result in the following except:A. Increased exports.В.Decreased imports.C. Lower domestic inflation.D. Reduced unemployment.

A powerless home currency will in general expand a nation's fares and abatement its imports,…

Answered: 7. A weak home currency may result in…

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Open-Economy Macroeconomics: Basic Concepts

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Problem 3QCMC

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46. Which of these situations will result in a stronger Omani Riyal? a. An increase in the exportation of oil and other minerals b. An increase in foreign borrowing c. An increase on the level of imports such as basic commodities d. An increase in the production of oil
2. Suppose there is a real appreciation of the domestic currency (this means there is an increase of the real exchange rate). Which of the following may have occurred? A. foreign currency has become more expensive in domestic currency. B. foreign goods have become more expensive to domestic residents. C. the foreign price level has increased relative to the domestic price level. D. the foreign price level had decreased relative to the domestic price level.
5. When the official dollar price of a foreign currency is set below its equilibrium level, the dollar a. is undervalued. b. is devalued. C. has been appreciated. d. is overvalued. e. is revalued. Thanks
Holding other things constant, an appreciation of anation’s currency causesa. exports to rise and imports to fall.b. exports to fall and imports to rise.c. both exports and imports to rise.d. both exports and imports to fall.
Which of these would cause the value of the Euro to rise? a. A rise in the Euro zone inflation rate relative to the rest of the world. b. An increase in US interest rates relative to European rates. c. An increase in the money supply in the Euro zone d. An increase in the demand for European made goods. Bracket creep (or fiscal drag) arises from a combination of a. real wage rises and a regressive tax system. b. Increasing government spending and taxes C. inflation and a progressive tax system. D tax cuts and inflation
28. A devaluation of a country's currency to improve its trade deficit would most likely benefit a producer of: A. export goods that have no close substitutes. B. an export good that represents a relatively small proportion of consumer expenditures. C. luxury goods for export. Hint: A devaluation of the currency will reduce the price of export goods in foreign currency terms. The greatest benefit would be to producers of goods with more elastic demand. Luxury goods tend to have higher elasticity of demand, while goods that have no close substitutes or represent a small proportion of consumer expenditures tend to have low elasticities of demand.
8. Incomes of U.S. farmers tend to be boosted by: A. Very good harvests on farms abroadB. Economic weakness in Europe and Southeast AsiaC. Increased protectionism in farm policies abroadD. A depreciation of the U.S. dollar
4. When the official dollar price of a foreign currency is set below its equilibrium level, the dollar a. is undervalued. b. is devalued. C. has been appreciated. d. is overvalued. e. is revalued. Thanks for your answer
The dollar depreciates against foreign currencies. This makes foreign-produced goods for Americans and U.S.-produced goods for foreigners. As a result, U.S. fall and U.S. rise. more expensive; cheaper; imports; exports O cheaper; more expensive; imports; exports cheaper; more expensive; exports; imports more expensive; cheaper; exports; imports
5. In a floating exchange rate regime between Japan and the U.S, what happens to the dollar in the following cases a. An increase in the purchase of electronic equipment's from Japan b. Higher real interest rates in the U.S
If U.S. securities pay 6 percent interest, and if Great Britain’s securities pay 8 percent interest, then a. pounds depreciate relative to dollars. b. pounds appreciate relative to dollars. c. Great Britain’s imports will fall. d. Great Britain’s exports will rise.
If the U.S. interest rate rises, the exchange rate value of the dollar ________ and net exports ________. a. rises; increase b. rises; decrease c. falls; increase d. falls; decrease

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7. A weak home currency may result in the following except: A. Increased exports. В. Decreased imports. C. Lower domestic inflation. D. Reduced unemployment.