maintain the stability of the bolivar (Venezuela's currency), the Chávez administration in January 2003, made it more difficult for investors to exchange bolivars for dollars.  This is an example of

Which of the followings cause a depreciation of domestic currency in the long run? (There are more than one answer, NO partial credit).   Question 1 options:   An increase in tariff.   An increase in domestic price level.   An increase in productivity.   An increase in imports demand.   An increase in export demand.

An increase in capital inflows in the United States will result in a(n) foreign currency and a(n) U.S. dollars in the foreign exchange market. increase in the demand for; increase in the supply of increase in the supply of; increase in the demand for shortage of foreign currency; surplus of decrease in the supply of; decrease in the demand for

Suppose Angola is experiencing an episode of hyperinflation. The currency in Angola is the second kwanza (which is actually the fourth currency called kwanza that has circulated since 1977). The currency code is (AOA).   Select all choices below that are implied by the statement if parity conditions (PPP, IRP, FEP) hold:   Nominal interest rates in Angola will exceed nominal interest rates in countries not experiencing hyperinflation. The value of the AOA is expected to drop to zero. Real interest rates in Angola will fall relative to countries without hyperinflation. The AOA is expected to depreciate against any currencies that are not experiencing hyperinflation.

In recent years, China has helped make its currency ____ by ____ U.S. dollars. stronger; buying stronger; selling  weaker; buying weaker; selling

Here are data for the U.S. balance of payments in a given year. All figures are in billions of dollars. Answer all of the following: a.The balance of trade in goods and services is $____billion. Balance of trade= (1635+709)-(478+2371)= -505 b. The current account balance is $____billion. Current account= (-505+218)= -287. (-287-124)= -411 c.The capital and financial account balance is $____billion. Capital and financial account= (1044-632)=412. (412-1)=411 d. The overall balance of payments balance is $____ billion. Explain why this must be so. balance of payments= -411+411= 0 Here's is the information table:  Foreign purchases of US assets - 632 Goods imports - 2,371 Service imports - 478 Net investment income +218 Service exports +709 Goods exports +1,635 Balance on the capital account -1 Net transfers -124 US purchases of assets abroad +1,044 Can you please check if my answer is correct and explain to me why answer d the overall balance of payments must be so?

Identify whether each attribute in the following table is an advantage or disadvantage of sharing a currency across country boundaries. Advantage Attribute Lower protectionism Dependent monetary policy Greater certainty for investors Elimination of exchange fluctuations Greater risk of macroeconomic shocks Which of the following are reasons the United States is considered Independent monetary and fiscal policies Limited use of fiscal policy Disadvantage An automatic mechanism for transferring fiscal resources across borders Flexibility of prices and wages currency area? Check all that apply.

which of the following cause a depreciation of domestic currency in the long run? (There are more than one answer) An increase in domestic price level An increase in productivity  An increase in imports demand An increase in tariff An increase in export demand

Suppose the exchange rate value of the dollar depreciates. Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the option once to place a check mark. For incorrect answer(s), click the option twice to empty the box. Who are the winners? People who want to buy foreign assets Firms that export goods People who want to buy assets in this country People who travel abroad Firms that import goods People who travel to this country

Assume the US has constant velocity, constant annual money growth equal to 5% and constant growth in real GDP equal to 3%. Assume Mexico has constant velocity, constant annual money growth equal to 4% and constant growth in real GDP equal to 5%. According to the PPP theory, what should happen annually to the value of the dollar relative to the Mexican peso? Provide a percentage change please.