If the world real interest rate falls, then a country that is an international lender Select one: O A. changes from being a net foreign lender to a net foreign borrower. B. does not change the amount of its lending. C. decreases the amount of its lending. O D. increases the amount of its lending. O E. none of the above

If the world real interest rate falls, then a country that is an international lender Select one: O A. changes from being a net foreign lender to a net foreign borrower. B. does not change the amount of its lending. C. decreases the amount of its lending. O D. increases the amount of its lending. O E. none of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If poor households spend relatively more on tradeable product categories, what happens after a large devaluation of domestic currency (assume a small open economy): O Relative price of tradeables goes down O Low-income households face relatively lower inflation than high- income households Cost of living of low-income relative to high-income households goes up after a large devaluation O There is little evidence of large distributional consequences from large devaluation
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7 Please answer all??
Assume that the U.S. interest rate is 12 percent, while the British interest rate is 15 percent. If interest rate parity exists, then: O a.U.S. investors will earn 12 percent whether they use covered interest arbitrage or invest in the United States. O b. U.S. investors will earn a higher rate of return when using covered interest arbitrage than what they would earn in the United States. O c. British investors who invest in the United Kingdom will achieve the same return as U.S. investors who invest in the United States. O d. U.S. investors will earn 15 percent whether they use covered interest arbitrage or invest in the United States.
Which of the following is NOT one of Mundell's four characteristics for an optimal currency area? Select one: O a. Capital mobility O b. Central bank mobility O C. Labor mobility O d. Coordinated fiscal policies
U.S. firms involved in international trade have to a. ignore U.S. inflation and ignore value of the dollar relative to foreign currencies. b. ignore U.S. inflation and guess value of the dollar relative to foreign currencies. Oc. International transactions are not affected by inflation or foreign exchange. O d. anticipate U.S. inflation and guess value of the dollar relative to foreign currencies. e. anticipate U.S. inflation and ignore value of the dollar relative to foreign currencies.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
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Which of the following is (are) likely to lead to increased capital inflow into Canada? O a. All of the answers are correct O b. Canadian government increases business taxes Oc The Bank of Canada cuts interest rates O d. Foreign countries cut their interest rates
A car costs $20,000 in the U.S. The exchange rate between the euro and the dollar is 0.813 euros per dollar. Ignoring transportation and other similar costs, what would be the euro price of the same car in France? Select one: O a. 28,000 euros O b. 16,260 euros O c. 24,600 euros O d. 15,300 euros Check
Suppose that national saving is $1568 billion, investment is $1835 billion, and private saving is $1490 billion. How much is the current account balance? Note: current account balance NX+ NFP. O $267 billion O1-267 billion -$221 billion $221 billion
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