Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
8th Edition
ISBN: 9781305585126
Author: N. Gregory Mankiw
Publisher: Cengage Learning
Question
Book Icon
Chapter 32, Problem 5CQQ
To determine

The impact of capital inflow on the exchange rate and interest rate.

Blurred answer
Students have asked these similar questions
If the Japanese yen appreciates against the U.S. dollar a. Americans should find Japanese goods are now less expensive b. Japanese residents would find Japanese goods are relatively less expensive than American goods c. U.S. goods should have an easier time competing against Japanese goods in both countries d. Japanese goods should have an easier time competing against U.S. goods in both countries
An increase in the supply of U.S. dollars by the Federal Reserve will a. raise the value of the dollar because it will stimulate U.S. economic growth b. reduce the value of the dollar because of inflation fears in the United States c. decrease the value of the dollar because it will force other countries to raise their interest rates d. raise the value of the dollar because it will lead to higher U.S. interest rates
What effect would a devaluation of a country's currency most likely have on its export volumes? A. Export volumes would decrease, as goods become more expensive in foreign markets. B. Export volumes would increase, as goods become cheaper in foreign markets. C. Export volumes would remain unchanged, as currency value does not affect trade. D. Export volumes would initially decrease, but then increase over time due to adjustments in trade agreements.
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co