thanks Initially the exchange rate between New Zealand and Pakistan is in equili
ID: 1099386 • Letter: T
Question
thanks
Initially the exchange rate between New Zealand and Pakistan is in equilibrium. Now assume that there is a decrease in demand for Pakistani rupee. 1. As a result of a decrease in demand for Pakistani rupee, what will happen to New Zealand dollars and Pakistani rupee? O An appreciation in New Zealand dollars O An appreciation in Pakistani rupee. O A depreciation in New Zealand dollars O A depreciation in Pakistani rupee. O No change in New Zealand dollars. O No change in Pakistani rupee 2. Furthermore, a decrease in demand for Pakistani rupee also results in winners and losers for various groups that are affected by the foreign exchange market. For the following list of groups you must indicate which groups are winners and losers by moving the labels into each slot. A. A tourist from New Zealand going on vacation to Pakistan. B. A mutual fund in New Zealand that is going to purchase bonds in Pakistan. C. A family from Pakistan visiting relatives in New Zealand. D. A small firm in Pakistan that sells DoDads in New Zealand. E. A large firm from New Zealand selling chemicals in Pakistan F. A multinational based in Pakistan purchasing land in New Zealand.Explanation / Answer
A . winner
B winner
C losser
D winner
E loser
F loser
F
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