(D). Under fixed exchange rates expansionary fiscal policy (e.g. an increase in G) will result in CB purchases of foreign currency-assets and an expansion of the money supply.
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Label the following statements as true, false or uncertain, and provide explanation.
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- S1: The primary purpose of the foreign exchange is to assist international trade and investment, by allowing businesses to convert one currency to another currency. S2: When the demand of foreign currency is greater than its supply, the currency becomes more valuable. A. both are true B. both are false C. S1 is true D. S2 is truePQ 8 The simple Marshall-Lerner condition would suggest that one of the following cases would produce a worsening of the trade balance if the country's currency depreciated. Which one? (The negative sign on elasticities is being ignoredf; also, assume that trade is initailly balanced) a. elasicity of demand for exports = .8; elasticity of demand for imports = .5 b. elasicity of demand for exports = .4; elasticity of demand for imports = .6 c. demand curve for exports is verttical; demand curve for imports is horizontal d. elasticity of demand for exports = .8; elasticity of demand for imports = .1Question 3 Countries that have adopted the euro must agree on a single Ofiscal O monetary O trade relations O foreign relations policy. 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.
- 8. Incomes of U.S. farmers tend to be boosted by: A. Very good harvests on farms abroadB. Economic weakness in Europe and Southeast AsiaC. Increased protectionism in farm policies abroadD. A depreciation of the U.S. dollarTrue/False A pro-savings policy by the US would likely reduce the US trade deficit.Currency A weakened by 7.2% against currency B in 2020 compared to 2019. In this case: Currency B strengthened by 7.2% against currency A. Currency B strengthened by 0.07758% against currency A. Currency B strengthened by 7.458% against currency A. Currency B strengthened by 7.758% against currency A.
- 11- Earnings such as wages, interests and dividends by residents who are living in other countries are called _____________. a. Domestic Output b. Factor income from abroad c. Price level d. Domestic productfast plz 28- Which of the following increases the supply of foreign exchange? a. Import of goods and services to a country b. Investments of capital in foreign countries c. Increases in tourism and export of local goods d. Demand for foreign goods and services31 - What is the difference between foreign sales revenues and foreign purchase expenses called?A) ExportB) Budget deficitC) Current Account DeficitD) foreign trade deficitE) Net exports
- A depreciation of the Canadian dollar will make Canadian goods ________ to foreigners and make imported goods ________ for Canadian residents. Select one: a. more expensive; cheaper b. more expensive; more expensive c. cheaper; cheaper d. cheaper; more expensive2. In order to stop the capital flight and avoid further depreciation of rupiah, one of the President Candidate suggests that government should start increasing the government budget surplus. Evaluate the suggestion using relevant diagrams.Question 1 Appreciation vs. Depreciation: You are given the following information regarding the nominal exchange rate between the USD and the Indian rupee (INR): Wednesday: INR 65 per USD 1 Thursday: INR 78 per USD 1 Friday: INR 74 per USD 1 Is it possible for any two currencies (e.g., the Canadian dollar-CAD and the Egyptian pound-EGP) to simultaneously appreciate relative to one another? Explain. The average price for a 16” pepperoni pizza in the U.S. is USD 10. The average price for a similar pizza in Ukraine is UAH 28. The nominal exchange rate is UAH 28 to USD 1. From the U.S. perspective, what is the real exchange rate for pizza between the U.S. and Ukraine? In other words, how many 16” pepperoni pizzas can you afford in Ukraine for what it costs to buy a similar pizza in the U.S.? (Show all work for full credit.)
