After the August 2019 primary elections in Argentina, foreign investors perceived increased political risk. The demand for the peso _____, and the peso _____. Group of answer choices fell; appreciated rose; depreciated fell; depreciated rose; appreciated
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- Cherryland, an imaginary country somewhere in the world invests heavily in government and corporate securities of the United States. In addition, Americans invest heavily in Cherryland. Approximately $10 billion worth of investment transactions occur between these two countries each year. On the other hand, the total dollar value of trade transactions per year is about $50 million. This information is expected to hold also in the near future.Because most of your firm’s exports goes to Cherryland, your job as international cash manager requires you to forecast the fluctuations in the value of the “cherrio”, the currency of Cherryland, with respect to the U.S. dollar. Questions:1) Explain how each of the following scenarios, holding other things equal, will affect the value of the cherrio.Scenarios:a. U.S. inflation has suddenly increased substantially, while inflation in Cherryland remains low.b. Real interest rates have increased substantially in the U.S.; while real interest rates in…Madison Company is a large manufacturer and distributor of cake supplies. It is based in Chicago(Headquarters) and Trinidad. It sends supplies to firms throughout the United States and the UnitedKingdom . It markets its supplies through periodic mass mailings of catalogues to those firms. Itsclients can make orders over the phone and Madison ships the supplies upon demand Given that one-third of the company sales are exports to the United Kingdom and invoices for exports are in US dollars, the demand for its exports is highly sensitive to the value of the British pound. In order to maintain its inventory at a proper level, it must forecast the total demand for its products which is somewhat dependent on the forecasted value of the pound. In your memo separate demand related factors from the supply related factors, that may influence exchange rate movements. Include any possible governmentFor oil exporting countries, the negative effect of oil boom on their economies is mainly due to volatility of oil price. Discuss.
- uppose a change in exchange rates causes aggregate demand to increase. Which of the following is NOT the result In the long run, the price level will increase. In the short run, GDP will increase. In the short run, the price level will increase. In the long run, GDP will increase. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.Which of the following would definitely cause a decrease in the price level for the U.S.? a transition from peace to war and a decrease in productivity an increase in interest rates and a good supply shock involving electricity an increase in wages and an appreciation of the U.S. dollar an expectation by business owners of worse business conditions and an increase in wages an increase in the cost of oil and an increase in tax ratesassume that initially, PPP holds, if the inflation rate in your country falls relative to the inflation rate in the United States. The domestic currency is ______ and will ________. select one a. overvalued; appreciate b. undervalued; appreciate c. overvalued; depreciate d. undervalued; depreciate e. remain unchanged
- A Canadian manufacturer starts exporting its products to the United States of America. Which of the following scenarios will have a negative effect on the Canadian manufacturer? Question 11 options: That weekend in Canadian dollar and increasing interest rates. A weakening Canadian dollar and the increase in the interest rates. A strong Canadian dollar with low interest rates. A strengthening of the Canadian dollar and an increase in interest rates.A decrease in interest rates caused by a change in the price level would cause a(n): A) Decrease in aggregate demand B) Increase in aggregate demand C) Decrease in the quantity of real domestic output demanded D) Increase in the quantity of real domestic output demandedJapan and the United States are major trading partners and the exchange rate between the Japanese yen and the United States dollar is determined in a flexible foreign exchange market. (b) Will each of the following increase, decrease, or stay the same as a result of the increase in the United States real income? (i) Japan’s net exports. Explain. (ii) Unemployment in Japan. Explain. (iii) Japan’s long-run aggregate supply
- Effect of fiscal and monetary policy on net exports in ZimbabweThe weighted average TT/US dollar selling rate depreciated marginally by 0.05 percent to US$1 = TT$6.7838 in August 2021 from US$1 = TT$6.7802 in October 2020.” Create a supply and demand graph with the above information."In an economy with a high dependency on imported oil, what is the likely macroeconomic impact of a sustained and significant increase in global oil prices? A) An immediate improvement in the trade balance due to Increased export revenues. B) A decrease in inflation as higher oil prices lead to reduced consumer spending. C) An increase in the general price level and potential deterioration of the trade balance. D) Stabilization of the currency value due to increased demand for domestic currency to purchase oil.