26. IMPACT OF DEVALUATION The inflation rate in Yinland was 14 percent last year. The government of Yinland just devalued its currency (the yin) by 40 percent against the dollar. Even though it produces products similar to those of the United States, Yinland has much trade with the United States and very little trade with other countries. It presently has trade restrictions imposed on all non-U.S. countries. Will the devaluation of the yin increase or reduce inflation in Yinland? Briefly explain.

If the dollar used to buy 100 yen and now buys 360 yen, there has been Answer 1. appreciation of the dollar. 2. depreciation of the dollar. 3. appreciation of the yen. 4. an increase in special drawing rights.

The currency of the United States is:   a. backed dollar for dollar by gold.   b. backed by a gold cover of 50 percent.   c. not backed by any precious metal.   d. backed by the government's silver reserves.   e. backed by the government's gold and silver reserves

AE Ap Ap suggests that p where E is domestic price of one unit of foreign currency (e.g., Rs100 = $1) Q.23 Purchasing power parity which can be written as A. The home currency will appreciate if the current home inflation exceeds the current foreign inflation rate. B. The home currency will appreciate if the current foreign inflation rate exceeds the current domestic inflation rate. C. The home currency will depreciate if the current home interest rate exceeds the current Foreign interest rate D. The home currency will depreciate if the current home inflation rate exceeds the current foreign interest rate. E. Both B and D are correct.

How current inflation trends (2017) in Australia, United States and Great Britain impact on currencies such as Australian dollar ,US Dollar and Great Britain Pound. For example, Are inflation rates expected to rise under the Trump presidency and what will happen to the US currency? Brexit impact on inflation and UK economy and what will happen to the Pound?

If the Central Bank of China announces that the yen will trade from tomorrow onwards at 5 to the dollar instead of the current 3 to the dollar, this is known as a. Revaluation b. Devaluation c. Depreciation d. Appreciation

Somebody has bought US Dollar with two-third of his money and Euro with one-third. Dollar has gained value overnational currency by 1.8 % each month and Euro 1.2 % each month. The average monthly inflation rate is 3. Find thepercentage loss of him/her at the end of a year.

Last week, 6 swedish kroner could purchase one U.S. dollar. This week, it takes 8 to purchase one U.S. dollar. this change U.S. aggregate demand. in the value of the dollar will exports from the U.S. sweden and 1. decrease; increase 2. increase; increase 3. increase; decrease 4. decrease; decrease

makes it harder to compare lira amounts from different times. We use _ to adjust figures so that they can be compared. For example, in September 1998 1 USD was 0.21 liras. Today the exchange rate is 8.5 liras to 1 USD. Was the Turkish lira really that much more valuable in 1998 than it is now? (If you do the inflation correction you will see that the lira was indeed 15% more valuable against the US dollar back then as compared to its current value.) A) Economic growth, the real GDP B) the CPI, inflation C) Inflation, the CPI D) Unemployment, the GDP Deflator E) Changes in prices, inflation

Country Y is experiencing severe and unanticipated inflation. Suppose that Country Y continues to experience high inflation in the long run. Indicate the effect of this inflation on the nominal interest rate in Country Y. If Country Y’s inflation is high relative to that of other countries, explain the effect of this inflation on the international value of Country Y’s currency.