A increase in the expected future domestic exchange rate causes the demand for domestic assets to ________ and the domestic currency to ________, everything else held constant. A. increase; appreciate B. increase; depreciate C. decrease; appreciate D. decrease; depreciate

The United States has a current account deficit equal to about 3.5 percent of GDP. Suppose that the US Government decides that it wants to reduce that to about 2.0 percent of GDP. A current account deficit means that the US is a For the US current account balance to Consequently one of these things must happen: US investment private savings net lender to exports and imports government expenditure US domestic savings must rise; and/or must fall. be balanced rise net taxes government savings net foreign income the rest of the world. (as they wish it to) then rest of the world savings must net borrower from net exporter of goods and services to MacBook Air be less than US savings fall net importer of goods and services from

Trinidad and Kenya are trading partners.  The Kenyan economy is operating at full employment, and Kenya's current account balance is zero. A.  Assume the exchange rate between the Trinidadian dollar (TD) and the Kenyan shilling (KS) changes from 1TD=82KS to 1TD=65KS.  Does the KS appreciate or depreciate against the TD? B.  Given your answer in Part A, will each of the following increase, decrease, or remain the same?      i.  The price of Kenyan goods in Trinidadian dollars      ii.  Kenya's net exports. C.  Draw a single correctly labeled graph with the long run Phillips curve for Kenya.  On the graph, show the new short run equilibrium as a result of the change in Kenya's net exports from Part Bii, labeled point X. D.  Given your answer in Part Bii, will each of the following be in deficit, surplus, or zero for Kenya?      i.  Current account balance      ii.  Financial (capital) account balance

The current exchange rate is $1.00 = 1.50 Swiss franc.  The exchange rate is expected to be $1.00 = 1.25 Swiss franc in six months.  The U.S. dollar is expected to   A. depreciate and the U.S. will import more from Switzerland   B. appreciate and the U.S. will export more to Switzerland   C. appreciate and the U.S. will import more from Switzerland   D. depreciate and the U.S. will export more to Switzerland

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Please no written by hand solutions Purchasing power parity states that   prices adjust to equalize rates of return across countries. purchasing power adjusts to reflect expected exchange rate fluctuations. exchange rates adjust to equalize the real purchasing power of money across countries. rates of return adjust to equalize expected exchange rate fluctuations. exchange rates adjust to equalize prices across countries.

Given the following information: Unilateral transfers: $120 billion, Exports in goods: $1,000 billion, Exports in services: $500 billion, Imports in goods: $1,400 billion, Imports in services: $300 billion, Income received by U.S. investors on foreign stocks and bonds: $600 billion, Income received by foreign investors on U.S. assets: $500 billion, what is the current account balance?

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.

Imagine that the economy of Germany finds itself in the following situation: the government budget has a surplus of 1% of Germany’s GDP; private savings is 20% of GDP; and physical investment is 18% of GDP. a. Based on the national saving and investment identity, what is the current account balance? b. If the government budget surplus falls to zero, how will this affect the current account balance?