When the domestic currency strengthens under a fixed-exchange-rate system, this is called a. a devaluation. b. a revaluation. c. a depreciation. d. an appreciation.

What would happen if Mexico has a trade deficit with the US?     The demand for U.S. dollar should increase and the U.S. dollar should appreciate against the Mexican peso.   The demand for Mexican peso should increase and the U.S. dollar should depreciate against the Mexican peso.   The supply for Mexican peso should increase and the Mexican peso should appreciate against the U.S. dollar.

In the pound per euro market an increase in the demand for the euro is also: A) an increase in the supply of pounds B) a decrease in the demand for pounds C) an increase in the supply of euros D) the result of higher UK interest rates

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?

If the exchange rate between the US Dollar ($) and the Euro (E) goes from being $7/E to $6/E, we say that the US Dollar has __________ relative to the Euro. a) appreciated b) arbitraged c) stagnated d) depreciated

Q)Suppose that the relative PPP holds. If a nation experiences 10% inflation and its trading partner does not, what happens to its nominal exchange rate? Not enough information is provided. It does not change. It appreciates by 10%. It depreciates by 10%.

Under a system of flexible exchange rates, what will correct a deficit in a country's balance of payments?   a. an appreciation in the nation's currency     b. a decline in the nation’s domestic price level     c. a depreciation in the nation's currency     d. an increase in the nation’s inflation rate   2. Which of the following would supply Canadian dollars to the foreign exchange market?   a. an increase in the number of Canadians going to Las Vegas over the holidays     b. an increase in spending due to American tourists in Canada     c. the sale of a Canadian corporation to a German investor     d. the sale of wheat from Manitoba to a European bakery

Under a fixed exchange rate regime, a tax increase will: require a decrease in the money supply. cause a reduction in Y*. cause an increase in government spending cause an increase in Y. cause no change in the investment.

What does it mean when the dollar appreciates compared to when the dollar depreciates?   Has the US dollar been relatively strong or weak over the past year?   How does the strength of the dollar affect exports and imports?

If the exchange rate between the US Dollar ($) and the Euro (E) goes from being $5/E to $6/E, we say that the US Dollar has __________ relative to the Euro. a) depreciated b) stagnated c) appreciated d) arbitraged