If the exchange rate moves from $1 for one Euro to $1.50 for one Euro, then Select one: a. it becomes more expensive for a European to buy a European product. b. it becomes more expensive for an American investor to save at an American bank. c. it becomes more expensive for an American to buy a Mexican product. d. it becomes more expensive for an American to buy a European product.

The theory of purchasing power parity says:   a. The real exchange rate is always greater than one b. The real exchange rate is always less than one c. The dollar price of a basket of goods in the U.S. should equal the yen price of a basket of goods in Japan d. A dollar should buy the same goods no matter where in the world you go

1 Suppose that two countries, Indonesia and Vietnam, produce coffee. The currency unit used in Indonesia is the Rupiah (IDR). The currency unit used in Vietnam is the Dong (VND). In Vietnam, coffee sells for 4,500 dong (VND) per pound. The exchange rate is 1.57 VND per 1 IDR, EVND/IDR = 1.57.   2 If the law of one price holds, what is the price of coffee in Indonesia, measured in Rupiah (assume we are talking about the same type of coffee)? Please round your answer to the nearest whole number.                   Assume the price of coffee in Indonesia is actually 3000 IDR per pound. Compute the relative price of coffee in Indonesia versus Vietnam (round your answer to 2 decimal places). Where will coffee traders buy coffee? Where will they sell coffee in this case? How will these transactions affect the price of coffee in Vietnam? In Indonesia?

If a Japanese car costs P*=1,000,000 yen, a similar American car costs P= 20,000, and a dollar can buy 100 yen, e= 100 yen/$. Car is assumed to be identical and japan is next door to New Hampshire for simplicity: a. What is the real exchange rate? In which country is car more expensive? b. From which country would you buy and which country would you sell?

Presently, the dollar is worth 140 Japanese yen in the spot market. The interest rate in Japan on 90-day government securities is 4 percent; it is 8 percent in the United States. a. If the interest-rate parity theorem holds, what is the implied 90-day forward exchange rate in yen per dollar? b. What would be implied if the U.S. interest rate were 6 percent?

please do this for the country China.

If a U.S. dollar purchases 1.2 Euros, and a gallon of milk costs $3 in the U.S. and 5 Euros in Spain what is the real exchange rate? Group of answer choices 1.8 .93 2 .72

An explosion of education levels causes Europeans' incomes to increase. How would this event impact the foreign exchange market for Euros? the dollar price of Euros decreases and the quantity of Euros increases the dollar price of Euros decreases and the quantity of Euros decreases the dollar price of Euros increases and the quantity of Euros increases the dollar price of Euros increases and the quantity of Euros decreases

If the exchange rate is such that $1 equals 5 euros, then the price of a euro is Answer 1. $5 2. $1 3. $0.40 4. $0.20 5nnints

Jennifer is an international business student at the university of Arizona. she is going to study abroad in Barcelona Spain next semester. Jennifer is saving money for the trip. Take a look at the following list of exchange rate scenarios. Which would be the most beneficial for Jennifer? The dollar weakened against the Euro  The dollar strengthens against the Euro  The Euro is expected to strengthen a lot just before Jennifer changes money and leaves for Spain. The dollar neither strengthens nor weakness against the Euro, it remains steady