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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The value of the currency of Country X appreciates relative to the currency of Country Y. How will this affect producers? O A. Producers in Country Y will benefit from a decline domestic competition. B. Producers in Country X will benefit from increased consumption of their goods in Country Y. C. Producers in Country X will benefit from a decline domestic competition. D. Producers in Country Y will benefit from increased consumption of their goods in Country X.
Over time, a real depreciation in the value of a nation's currency should result in Select one: a. exports rising and imports falling. O b. exports falling and imports rising. O. both imports and exports rising. O d. both imports and exports falling.
Suppose that a laptop computer sells in China for 3,740 yuan, and that the exchange rate between the Canadian dollar and the yuan is 11 yuan per Canadian dollar. Canadian. If you buy the laptop in China it will cost you the equivalent of O A. $41.1 O B. $4,114 OC. $411 OD. $340 O E. $34
Pls help with below homework -)
Suppose that a laptop computer sells in China for 3,120 yuan, and that the exchange rate between the Canadian dollar and the yuan is 13 yuan per Canadian dollar. If you buy the laptop in China it will cost you the equivalent of Canadian. ..... O A. $406 O B. $40.6 OC. $24 O D. $4,056 O E. $240
A 216.
If one Canadian dollar buys US$0.85, and one Euro buys US$1.20, then one Euro should buy O a. C$1.02 O b. C$1.41 O c. C$2 O d. C$1.64
If the income in Mexico increases gradually, then most likely Mexico will import goods and services from other countries. more O the same amount less O either more or less depending on political circumstances
6. Most foreign exchange transactions are through the U.S. dollar. If the transaction is expressed as the foreign currency per dollar this is known as _____________ whereas ___________ are expressed as dollars per foreign unit. a. European terms; indirect b. American terms; direct c. American terms; European terms d. European terms; American terms
The PPP conclusion that exchange rates are determined solely by changes in relative price levels Select one: O a. rests on the assumption that all goods are identical in both countries Oa. O b. does not take into account that some goods and services are not traded Oc. is accurate as a long run proposition O d. both a and b are correct O e. all are correct
The current account is the record of receipts from other countries. other countries, minus official lending to; record of foreign investment in; interest and rents other countries, plus the net amount of O A. record of foreign investment in; transfer payments to; capital O B. O C. O D. the sale of goods and services to; payments for goods and services bought from; interest and transfers payments for goods and services bought from; the sale of goods and services to; wages and transfers received from and paid to
Assume that initially PPP holds, the theory of PPP suggests that if one country's price level rises relative to another's, its currency is and should Select one: O a. undervalued; depreciate O b. overvalued; depreciate O c. overvalued; appreciate O d. remain unchanged O e. undervalued; appreciate Next page to search