foreigners want to invest more in the American economy______? Group of answer choices 1The exchange rate increases (the US $ appreciates). 2The exchange rate is unaffected. 3The exchange rate decreases (the US $ depreciates). 4The exchange rate could decrease (the US $ depreciates) or it could increase (the US $ appreciates).

Transfer pricing by MNCs may be a problem for host countries as a. It disadvantages MNCs realtive to local firms. b. the cost of exchanging one currency for another is costly in monetary terms and time. c. profits may not be accurately recorded as occurring in the host country leading to lower tax revenues. d. as prices are transferred to the local currency losses may occur if exchange takes place on a day when the exchange rate is "low".

Initially, the exchange rate between Lebanon and Mexico is in equilibrium. Now, assume that there is a decrease in demand for Mexican pesos.   As a result of this change, what will happen to Mexican pesos? an appreciation a depreciation no change Furthermore, a decrease in demand for Mexican pesos also results in winners and losers for various groups that are affected by the foreign exchange market. For the group in each example, indicate whether it is a winner or a loser in this change.     ____ a tourist from Lebanon going on vacation to Mexico. ____ a mutual fund in Lebanon that purchases bonds in Mexico. ____ a family from Mexico visiting relatives in Lebanon. ____ a small firm in Mexico that sells DoDads in Lebanon. ____ a large firm in Lebanon selling chemicals in Mexico. ____ a multinational based in Mexico purchasing land in Lebanon.     Answer Bank: winner, loser

Under a gold standard in which France defined one franc to be worth 1/50th of an ounce of gold and the U.S. defined one dollar to be worth 1/10th of an ounce of gold, then - one U.S. dollar would exchange for five French francs. - the French franc is worth only one-tenth as much as the dollar is worth. - one French franc would exchange for ten dollars. - the U.S. dollar is valued at one-fifth of the French franc.

Please solve both 13 and 14th question . I will give you thumbs up .

What is the relationship between the current account and the capital account in the balance of payments? Select one: a. The current account shows all income and expenditure and the capital account shows investment and how it is funded. b. The capital account shows how a current account deficit is funded or a surplus is disbursed. c. There is no relationship between them as they measure different things. d. The current account balance is the difference between exports and imports and the capital account balance shows net foreign income.

Based on the Balance of Payments account presented in this table, the net exports are: a. 2300 b. -2600 c. -300 d. -200

A nation’s merchandise trade balance reflects _____. A.the value of exports of servicestrade b. in tangibles and intangibles c.the same information as its balance of payments d.trade in tangible products e.the value of imports of services

answer A B C, hand draw the graphs

Suppose a country imposes a tariff on imports from abroad.  a. How does this action affect the country’s imports of foreign goods? b. How does this action affect the world relative demand for foreign goods and the relative demand for home goods? c. How does this action change the long-run real exchange rate between the home and foreign currencies? d. How is the long-run nominal exchange rate affected?