An increase in the supply of U.S. dollars by the Federal Reserve will a. raise the value of the dollar because it will stimulate U.S. economic growth b. reduce the value of the dollar because of inflation fears in the United States c. decrease the value of the dollar because it will force other countries to raise their interest rates d. raise the value of the dollar because it will lead to higher U.S. interest rates
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- of An appreciation of the dollar is usually a sign that Select one: A Canadian interest rates have increased. OB. real national income in Canada is increasing. OC. the Bank of Canada is pursuing an expansionary monetary policy. OD. D. Canadian bond prices have increased.Suppose there are two countries in the world, Mexico and the United States. The currency of Mexico is the peso, the currency of the United States is the dollar. On the foreign exchange market, the supply of dollars comes from Oa the demand for pesos Ob. the supply of pesos Oc the demand for dollars O d. There is not enough information given to answerIf inflation increased in the Philippines while China’s inflation remains the same, there would be _______ Philippines demand for China’s yuan and _______ supply of yuan for sale. A. an increased; an increased B. an increased; a decreased C. a decreased; a decreased D. a decreased; an increased
- If the dollar depreciates against the Indian rupee Indian imports to the U.S. become less expensive. U.S. exports to India become less expensive. U.S. exports to India become more expensive. The value of Indian imports to the United States does not change.Assume that the Japanese government wants to reduce inflation. Which of the following would be an appropriate action for the Japanese government? A. Sell yen for foreign currency B. Decrease interest rates C. None of the options are correct D. Buy yen with foreign currency E. Increase interest ratesA European investor lives near one of his country’s borders. In Country A (where he lives), banks are offering an 8% interest rate and the inflation rate is 3%. Country B, on the other hand, has an inflation rate of 23%, and banks are offering 26% interest on deposits. a. What real or effective interest rate does the investor earn when investing in his own country? b. The investor believes that the currency of Country B will not change in its value relative to the value of the currency of Country A during this year. In which country would he get a larger effective interest rate? c. Suppose that he invests in a bank in Country B and that his prediction turns out to be wrong: the currency of Country B was devaluated 20% with respect to the exchange value of Country A’s currency. What effective interest rate would he obtain in this case?
- Suppose that the Federal Reserve conducts an open market sale. Everything else, including the public's expectation on inflation, held constant, this will cause the demand for U.S. assets to ________ and the U.S. dollar will ________. Question 20 options: increase; appreciate decrease; depreciate decrease; appreciate increase; depreciateA 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.Explain the effects of a fall in the value of the UK pound and lower spending by businesses and households on U.K. aggregate demand and aggregate supply The fall in the value of the U.K. pound OA. decreases U.K exports and increases U.K. imports, decreases OB. increases UK exports and decreases UK imports, increases C. increases UK exports and decreases U.K. imports, does not change D. has no influence on U.K. exports or UK imports, does not change which aggregate demand. US
- suppose that the federal reserve conducts an open market sale. Everything else, including the public's expectation on inflation, held constant, this will cause the demand for U.S. assets to _______ and the U.S. dollar will _________. Decrease; appreciate increase; appreciate decrease; depreciate increase; depreciateNew Zealand dollar drops to lowest value against US dollar since 2020 (27/09/2022) The New Zealand dollar has dropped to its lowest value against its US equivalent since March 2020. The bad news for Kiwis is that it means it'll take longer for consumer price inflation to fall....a weak kiwi dollarmeans importing is more expensiveWhile we do expect inflation rates to slowly fall from here, the longer the New Zealand dollar remains low, the slower it will take for those inflation rates to fall, ASB senior economist Mark Smith said Six months ago the New Zealand dollar was US68.9c - now it's at US56.6c. a fall of 18 percent. Aotearoa's dollar is suffering because the US dollar is being pumped up by the US Federal Reserve lifting interest rates to tackle inflation. "Interest rates globally are going up, and when rates are going up, generally people tend to look to where their money will be safest, and at the moment it's certainly the US economy," saidSmithBut Finance Minister Grant…New Zealand dollar drops to lowest value against US dollar since 2020 (27/09/2022) The New Zealand dollar has dropped to its lowest value against its US equivalent since March 2020. The bad news for Kiwis is that it means it'll take longer for consumer price inflation to fall....a weak kiwi dollarmeans importing is more expensiveWhile we do expect inflation rates to slowly fall from here, the longer the New Zealand dollar remains low, the slower it will take for those inflation rates to fall, ASB senior economist Mark Smith said Six months ago the New Zealand dollar was US68.9c - now it's at US56.6c. a fall of 18 percent. Aotearoa's dollar is suffering because the US dollar is being pumped up by the US Federal Reserve lifting interest rates to tackle inflation. "Interest rates globally are going up, and when rates are going up, generally people tend to look to where their money will be safest, and at the moment it's certainly the US economy," saidSmithBut Finance Minister Grant…