Q19 The real exchange rate measured as Japanese goods per U.S. goods (like in th
ID: 2440695 • Letter: Q
Question
Q19
The real exchange rate measured as Japanese goods per U.S. goods (like in the videos) would be lower if
prices of Japanese goods were higher, or the number of yen a dollar purchased was lower.
prices of Japanese goods were lower, or the number of yen a dollar purchased was lower.
prices of Japanese goods were higher, or the number of yen a dollar purchased was higher.
prices of Japanese goods were lower, or the number of yen a dollar purchased was higher.
Q21
Suppose that during 2016, the price level in the U.S. rose at a faster rate than the price level in Canada. According to the law of one price and purchasing power parity, this difference in inflation rates should have caused
the real exchange rate of the U.S. dollar to appreciate relative to the Canadian dollar.
the nominal exchange rate of the U.S. dollar to appreciate relative to the Canadian dollar.
the nominal exchange rate of the U.S. dollar to depreciate relative to the Canadian dollar.
the real exchange rate of the U.S. dollar to depreciate relative to the Canadian dollar.
Q22
If the exchange rate changes from 1.50 euros per dollar to 1.25 euros per dollar, then the dollar has
A. depreciated and therefore buys fewer European goods and services.
B. appreciated and therefore buys fewer European goods and services.
C. depreciated and therefore buys more European goods and services.
D. appreciated and therefore buys more European goods and services.
a.prices of Japanese goods were higher, or the number of yen a dollar purchased was lower.
b.prices of Japanese goods were lower, or the number of yen a dollar purchased was lower.
c.prices of Japanese goods were higher, or the number of yen a dollar purchased was higher.
d.prices of Japanese goods were lower, or the number of yen a dollar purchased was higher.
Explanation / Answer
Answer 19 : Option 'A' is Correct.
Explanation : . This will be true as the yen appreciates.
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