If the dollar appreciates , it can be said that Question options: A federal defi

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If the dollar appreciates, it can be said that

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A federal deficit that raises interest rates will, everything else being equal,

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Table 18-1

American Coal

British Coal

Cost per Ton

Cost per Ton

$150

75

From Table 18-1, what is the exchange rate between the dollar and the pound?Question options:

Table 18-1

American Coal

British Coal

Cost per Ton

Cost per Ton

$150

75

Assume that the information in Table 18-1 applies to the cost per ton of coal in 1998. Assume that also over a 10-year period prices rise 100 percent in Great Britain and 200 percent in the United States. According to the purchasing power parity theory, the exchange rate between the dollar and the pound in the year 2008 will beQuestion options:

If exchange rates are determined in a floating rate system, what determines the value of a U.S. dollar in terms of euros?

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If European economies experience a strong economic recovery, U.S. net exports will

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If a country is in a strong upward phase of the business cycle, one can expect that its currency will

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In the long run, the chief determinant of exchange rate changes is a change in

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If the exchange rate of the Swiss franc is 1.61 francs per dollar, then the Swiss franc is worth about

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If the U.S. exports passenger jet aircraft, what is the effect in the foreign exchange market?

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Who among the following is most likely to favor an appreciation of the U.S. dollar?

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The Bretton Woods system worked fairly well for a number of years, but it finally broke down over

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If a currency depreciates, a country's net exports

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A prolonged recession in Europe should decrease the

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A fixed exchange rate can be maintained by a government as long as it has sufficient

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When exchange rates are set by government decree,

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At any given moment there is one exchange rate

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Explanation / Answer

Ans 2. other currencies depreciate.

Ans 3. reduce exports.

Ans 4. One pound is worth 50 cents.

Ans 8. demand and supply

Ans. 9. increase and AD will shift outward.

Ans 10. Appreciate

Ans 12. Price levels

Ans 16. It will increase demand for U.S. dollars.

Ans 17. Disney World in Orlando, Florida, a popular destination for foreign tourists

Ans 19. rise and AD increases.

Ans 20. demand for U.S. dollars.

Ans 21. gold and other precious metals.

Ans 23. depreciation is called devaluation.

Ans 24. between every pair of currencies.

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