What is an appreciation in the exchange rate of a currency? Outline two (2) positive effects of an appreciation in the value of the Australian Dollar. How is the level of unemployment in Australia likely to be affected by an appreciation in the value of the Australian Dollar.

Q: The U.S. economy is growing faster than that of Japan. The faster growth rate in the U.S. should…

A: Economy- It means managing available resources carefully.

Q: The rate at which one currency can be exchanged for another is the exchange rate.   B) Exchage rates…

A: Exchange rate - The exchange tells us about the worth of the currency of one country in comparison…

Q: Which of the following increases the supply of foreign exchange? a. Investments of capital in…

A: Investment in foreign country increases the demand for foreign currency, and increases the supply of…

Q: You read in the paper that the dollar has strengthened in value relative to the euro. How is this…

A: Value of a currency states the price or interest rate at which people from different countries are…

Q: For each of the following situations, indicate the direction of the shift in the supply curve or the…

A: 1. When the American made cars becomes popular in the overseas market, it means that the American…

Q: Suppose the U.S. dollar price of a British pound is $ 1.50; the dollar price of a euro is $ 1…

A: A British pound = $1.50 A euro = $1 To get the exchange rate between the euro and the British pound:…

Q: what will be the likely impact of a decerease in demand for australian goods in china on the…

A: When there is a fall in the demand for Australian goods in china it implies Chinese consumers are…

Q: Explain what will happen to the exchange rate between the rand and the US dollar if south african…

A: The international trade has increased due to the widespread of the globalization around the world.…

Q: If the exchange rate between the US Dollar ($) and the Indian Rupee (Rs.) goes from being Rs. 60/$…

A: Exchange rate: - the exchange rate is the rate at which the currency of one country can be exchanged…

Q: Contrast the effects of having a fixed versus a floating exchange rate for a country’s economy

A: Exchange rate are the currency values which are used by the countries for the purpose of imports…

Q: A decrease in Chinese demand for U.S. dollars over the past year has reduced the market equilibrium…

A: Exchange rate: - the exchange rate is the rate at which the currency of one country can be exchanged…

Q: Describe the foreign exchange market and its components.

A: Foreign exchange market- it is a market, which is also known as forex and currency market. It is a…

Q: One of the major trading partners of Mexico is the USA. In 2009, one US dollar was equal to 13…

A: The exchange rate is the value of the currency of one country in terms of the currency of another…

Q: What is the relation between exchange rate and balance of payments .         -Appreciated currency…

A: BOP is a statement comprising of all the transactions between individuals of a country with the…

Q: What effect does a high exchange rate have on imports, exports, and that country's production?

A: The rate that measures the value of a nation’s currency in terms of another nation’s currency is…

Q: Discuss the strong and weak points of the flexible exchange rate system? What are the strong and…

A: The exchange rate is the rate that is used to exchange one national currency for another.

Q: When the official dollar price of a Foreign currency is set below its equilibrium level, the dollar

A: Equilibrium exchange rate is determined where the demand and supply for foreign exchange are equal.…

Q: Other fundamental things equal, a decrease in the exchange rate value of the domestic currency will…

A: An Exchange Rate(ER) is the value of the currency of a nation with the currency of another nation or…

Q: Variations in the foreign exchange rate can impact on the profitability of business. Explain what…

A: Exchange rate fluctuations impact trade and businesses in various ways. The nominal exchange rate is…

Q: an increase of the international value of the US dollar will most likely benefit  a) domestic…

A: International trade agreements govern the exchange of goods and services between two or more…

Q: Foreign exchange rates refer to the  price at which purchases and sales of foreign goods take place…

A: The exchange rate is the utmost vital determining factor of a state's comparative level of financial…

Q: The euro/dollar exchange rate is 1 euro = $1.20. According to the law of one price, a camera that…

A: A swapping scale system or exchange rate is the way a country deals with its cash in the unfamiliar…

Q: explosion of education levels causes Europeans' incomes to increase. How would this event impact the…

A: Money supply implies to the aggregate volume of currency held by the public at a particular point in…

Q: If the nominal exchange rate of the Swiss Franc to Dollar is 0.95 from the Swiss point of view and…

A: The cost of converting one currency for another is known as the nominal exchange rate. It's the…

Q: Assume that the Japanese government relaxes its controls on imports by Japanese companies. Other…

A: According to question Japanese government giving relaxation to imports to Japanese companies then…

Q: Suppose that over the past decade, the Australian inflation is greater than that in Japan. Further…

A: Real exchange rate is the ratio of price of two countries consumption basket.

Q: "If monetary policy is used to set the market equilibrium value of the exchange rate equal to the…

A: Market equilibrium value of the exchange rate is the equilibrium point where the demand and supply…

Q: What could importers such as the Chinese airlines have done to limit the negative impact of a…

A: A reduction within the value of a currency in terms of its rate versus other currencies is…

Q: Suppose the Indian government as part of its trade policy decides to remove tariffs or quotas. In an…

A: India's Foreign national trading policy aims to extend the country's share of world trade from this…

Q: Country X adopts a fixed exchange rate system. If the return on capital in a foreign country is more…

A: The rate at which one currency is being measured in terms of another currency is known as the rate…

Q: Identify two factors (or characteristics of economy) that underlie a nation’s decision to adopt a…

A: Foreign exchange market is an international mechanism for foreign currency purchases and selling.…

Q: Consider the effects of an increase in Japanese interest rates on the exchange rate between the…

A: When there is rise in the Japanese interest rate considering the exchange rate between the British…

Q: If there was an sudden change in exchange rates that resulted in fewer US Dollars being required to…

A: If there was an sudden change in exchange rates that resulted in fewer US Dollars being required…

Q: If the exchange rate between the US Dollar ($) and the Euro (E) goes from being $7/E to $6/E, we say…

A: Value of U.S dollar has decreased against euro. Therefore U.S dollar has depreciated against euro.

Q: For small, open economies that export and import a large volume of goods and services, a fixed…

A: In the international market, exchange rate are determine under fixed or flexible exchange rate…

Q: An appreciation of the exchange value of the U.S. dollar would: A) increase the dollar prices of…

A: The value of a country's currency in relation to the currency of another country or economic zone is…

Q: What effect would an appreciation of the U.S. dollar, relative to the Chinese Yuan, have on both the…

A: An appreciation of the U.S. dollar relative to the Chinese Yuan will make U.S. Dollar stronger…

Q: The US economy is growing faster than that of Japan. The faster growth rate in the US should cause…

A: Answer to the question is as follows :