An increase in U.S. interest rates relative to German interest rates would likely ____ the U.S. demand for euros and ____ the supply of euros for sale. A. reduce; increase B. increase; reduce C. reduce; reduce D. increase; increase

QUESTION 22 3 pol Suppose that • The Elasticity of Imports in the USA in the short Run is 0.5 • The Elasticity of Imports in Japan in the short Run is 0.6 • The Elasticity of Imports in the USA in the long Run is 0.9 The Elasticity of Imports in the Japan in the long Run is 1 According to the Elasticities approach to the Current Account Balance, if the Exchange Rate goes from Yen=$1/100 to Yen $1/50 . O The Current Account Balance will be unchanged • The Current Account Balance in the US will deteriorate in the short run, and improve in the long run O The Current Account Balance in the US will deteriorate in the short run and in the long run O The Current Account Balance in the US will improve both in the short run and in the long run

Which of the following will most likely cause a nation's currency to appreciate on the foreign exchange market? a. A decrease in domestic interest rates O b. An increase in foreign interest rates c. Stable domestic prices while the nation's trading partners are experiencing 10 percent inflation O d. Domestic inflation of 10 percent while the nation's trading partners are experiencing stable prices

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Only like if no ai or downvoted for ai content Suppose that the equilibrium exchange rate between the United States and South African is 15.13 Rand per US dollar. Further suppose that the two countries are trading partners with each other. Inflation now rises in South Africa. Which of the following answer choices correctly represents the shift that would occur in the US foreign exchange market? The supply of US dollars would fall. The demand for South African Rands would rise. The supply of South African Rands would rise.

a. Define the concept of equilibrium in the foreign exchange market, from an Australian perspective, using Australian dollars (AUD) and New Zealand dollars (NZD) as your currencies. Explain the factors that might bring about a fall in the exchange rate.   b. What is the likely impact on Australia’s economy of a fall in the exchange rate and what can be done to prevent this from happening?

If countries A and B are the only two countries in the world, then if the currency of country A appreciates, the currency of country B... O a. May appreciate or depreciate, depending on the elasticity of demand for the exports of country A. O b. May appreciate or depreciate, depending on the volume of trade between the two countries. O c. Must appreciate. O d. Can appreciate relative to other countries. O e. Must depreciate.

QUESTION 2 N Consider the exchange rate between U.S. Dollar and Mexican Peso: USD/MXN. If the supply curve for USD shifted from 100+e to 104+eN bln dollars per week and the demand curve shifted from bln dollars per week, then the exchange rate changed by 140-e - eN to 142-eN percent. Note: Type in your answer rounded to two decimal places, i.e., your answer must be of the form "999.99". I will not be able to fix correct answers that were entered incorrectly, such as "999.999" or "999,99" or "999". In case the last digit in the correct answer is zero, e.g., "999.90" or "999.00", Blackboard may automatically delete it and you should not do anything about it. In case of percentages, do not type in the percentage symbol "%". If your answer is a negative number, type a dash in front of your answer, i.e, "-999.99".