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- Only typed answerThe evolution of the payments system from barter to commodity money, then to fiat money, then to electronic money can best be understood as a consequence of: O a. government regulations designed to improve the efficiency of the payments system O b. competition among firms to make it easier for customers to purchase their products O c. government regulations designed to promote the safety of the payments system. O d. innovations that reduced the costs of exchanging goods and services.If a country's currency depreciates, what would be the effect on the Bala Select one: O a. It becomes flatter. O b. A shift to the right. O c. It becomes steeper. Od. A shift to the left.
- 13. Study Questions #13. Ch 11. Suppose the interest rate (on an annual basis) on three-month Treasury bills is 10% in London and 6% in New York, and the spot rate of the pound is $2.03. How can a U.S. investor profit from uncovered interest arbitrage? O Purchase pounds at $2.03 in New York to buy U.K. Treasury bills in London, thus earning 4% per year. O Purchase pounds at $2.03 in New York to buy U.K. Treasury bills in London, thus earning 3% per year. O Purchase pounds at $2.03 in New York and sell them in the U.K., thus earning 4%. O Purchase pounds at $2.03 in New York to buy U.K. Treasury bills in London, thus earning 3.05% per year.Choose the correct answer and give correct explaination 1. A central bank can fix an exchange rateA. In perpetuityB. Only for as long as the market believes that it has the political will to do so.C. Only for as long as it has reserves of goldD. Only for as long as it has independence of monetary policy.Cover A strong dollar is normally expected to cause: O low unemployment and low inflation in the U.S. O high unemployment and high inflation in the U.S. O high unemployment and low inflation in the U.S. O low unemployment and high inflation in the U.S. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.
- Computing the real exchange rate: 2. Assume that the nominal exchange rate between U.S. and Mexico is: e = 10 pesos per $. The price of Tall Starbucks Latte: P = $3 in U.S.; P* = 24 pesos in Mexico. A. What is the price of a U.S. latte measured in pesos? B. Compute the real exchange rate, measured as Mexican lattes per US latte. C. Interpret the real exchange rate you obtain in “B”.Suppose a country's central bank announces that it is decreasing the long-run money growth rate to tame inflation. The country's currency will suddenly and its rate of depreciation will then O appreciate; rise O appreciate; fall O depreciate; rise O depreciate; fallWhich of the following would be classed as an expansionary monetary policy? O A. A decrease in the quantity of money. В. A decrease in interest rates. С. An increase in government taxation. O D. An increase in government expenditure. O E. An increase in VAT.
- Assume that initially PPP holds, the theory of PPP suggests that if one country's price level rises relative to another's, its currency is and should Select one: O a. undervalued; depreciate O b. overvalued; depreciate O c. overvalued; appreciate O d. remain unchanged O e. undervalued; appreciate Next page to search1. BHP Billiton is a new global challenger. A) true B) false 2. Nonconvertible currencies are hard currencies. A) true B) false 3. The key focus of the World Bank is helping countries to stabilize foreign exchange. A) true B) false 4. A deposit of Euros held in banks in Germany is considered Eurocurrency. A) true B) false 5. A strategic global team focuses on the efficient operation of the business across the network. A) true B) false 6. Among entry strategies, low-control strategies require substantial resource commitment. A) true B) false 7. Contracting with intermediaries in the foreign market to perform export functions enables firms’ indirect exporting. A) true B) false 8. Technical support outsourcing is part of business process outsourcing (BPO). A) true B) false 9. Assume entity A (in a country with high corporate income tax) and entity B (in a country with low corporate income tax) are two subsidiaries of Company ABC. Entity A sells parts to entity B.…Please help me with this questions. Thank you 1. Using the IS–LM–FX model, illustrate how an increase in the home country’sgovernment spending affects the home country. Compare the outcome when the homecountry has a fixed exchange rate with the outcome when the home currency floats. Foreach case, state the effect of the increase in the home country’s government spending(increase, decrease, no change, or ambiguous) on the following variables: Y, i, E, C, I,TB. 2. During the 1980s, the United States experienced “twin deficits” in the currentaccount and government budget. Since 1998 the U.S. current account deficit has grownsteadily along with rising government budget deficits. Do government budget deficitslead to current account deficits? Identify other possible sources of the current accountdeficits. Do current account deficits necessarily indicate problems in the economy? 3. Suppose the Japanese government is considering two policies. One policy wouldinvolve increasing government…