Which of the followings cause a depreciation of domestic currency in the long run? (There are more than one answer, NO partial credit).   Question 1 options:   An increase in tariff.   An increase in domestic price level.   An increase in productivity.   An increase in imports demand.   An increase in export demand.

Q: Identify any two reasons that US dollars would be demanded in South Africa

A: There can be many reasons that the foreign currency would be demanded in a country such as for…

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: Imagine that two identical countries have restricted imports to identical levels, but one has done…

A: Quotas and tariffs are some of the tools used by countries for restrictive trade activities. The…

Q: In the determination of currency prices and exchange rates, the market forces of supply and demand…

A: In the determination process of currency prices and exchange rates, the market forces play a…

Q: Which of the followings cause the public to expect a depreciation of domestic currency?(There are…

A: Currency depreciation is a decrease in the value of a currency against the foreign currencies in a…

Q: As the price level rises, the cost of borrowing money will causing the quantity of output demanded…

A: The AD curve or the aggregate demand curve shows different combinations of the price (P) and output…

Q: A rise in interest rates is expected to lead to an appreciation of the currency, and a drop in…

A: A higher interest rate in a country leads to increase in the value of that country's currency…

Q: maintain the stability of the bolivar (Venezuela's currency), the Chávez administration in January…

A: The given situation is an example of capital control. the Capital controls enable a nation to…

Q: Display graphically changes in the value of domestic currency, if the domestic price level increases…

A: Price level tells us the average price of all goods and services of a country.

Q: If the U.S. Congress imposes a quota on imports of Japanese cars due to claims of "unfair" trade…

A: The imposition of import quota by the U.S. will reduce the export of Japanese cars and increase the…

Q: Explain why you agree or disagree with the following statements:a. A country that grows faster than…

A: International trade refers to the exchange of goods and services from one country to the other. The…

Q: Explain the difference between the appreciation of domestic currency and depreciation of domestic…

A:

Q: When the official dollar price of a foreign currency is set below its

A: Exchange Rate: We know that The exchange rate represents how much of a currency is needed to…

Q: Which of the following parties will suffer if the value of the US dollar decreases? Group of…

A: Devaluation is the process through which a currency loses value when measured against other…

Q: A9 In which of the following scenarios are currency speculators likely to attack a country's…

A: Currency speculation occurs when a person purchases a foreign currency not to pay for an import or…

Q: Provide two examples of how a company might engage in currency speculation.

A: Currency speculation refers to when an individual buys a currency with the aim to earn profit rather…

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: An appreciation of the dollar against all currencies in the foreign exchange market would result in…

A: The appreciation of the currency means increase in the value of the currency in relative to foreign…

Q: Exports contracts are denominated in foreign currency. Imports contracts are denominated in. foreign…

A: Devaluation means the official reduction in the external value of the domestic currency in terms of…

Q: All of the following are surplus items on a country's balance of payments EXCEPT a. gold sales to…

A: Balance of payment is a type of financial statement of a country which includes all money…

Q: Display graphically changes in the value of domestic currency, if foreign consumers develop stronger…

A: If foreign consumers develop stronger preferences for domestic goods,then demand for domestic goods…

Q: U.S. businesses are demanders of foreign currencies because they need them to    produce goods and…

A: Foreign currencies refer to the currencies other than the currency of the domestic economy. The…

Q: The gold standard caused the fluctuations of exchange rates between countries True or false

A: In the international market, the value of a currency depends upon its demand and supply, but its…

Q: Suppose the increase in tariffs on goods and services from China and European Union countries caused…

A: Capital flight refers to the outflow of capital from the domestic economy to the another economy.

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: A currency appreciation reduces aggregate demand and raises aggregate supply. True False

A: In the international market, the value of any currency, either appreciates or depreciates under a…

Q: Country A’s goods have become relatively less expensive for Country B’s buyers due to a change in…

A: For country B's buyers,imports have become less expensive. That happens when exchange rate…

Q: the Central Bank of China announces that the yen will trade from tomorrow onwards at 5 to the dollar…

A: Answer is given below

Q: An increase in capital inflows in the United States will result in a(n) foreign currency and a(n).…

A: Capital flows have an effect on the domestic currency exchange rate as well as the foreign currency…

Q: Thailand is a net-importer. This means that they import more than they export. How does this affect…

A: If the imports are more than the exports, then it is called the appreciation of the home currency.…

Q: Companies that reduce their margins on export products in the face of appreciation of their home…

A: As a result of appreciation exports are going to decline. If they reduce their profit margin , they…

Q: Increase in foreign income will _______ net export but depreciation of domestic currency will…

A: Net exports is the net amount of goods and services sold to the foreigners during a specific time…

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: which of the following cause a depreciation of domestic currency in the long run? (There are more…

A: Appreciation of the dollar means the worth of Dollar increases with reference to other currencies In…

Q: Country A’s goods have become relatively more expensive for Country B’s buyers due to a change in…

A: Country A’s goods have become relatively more expensive for Country B’s buyers due to a change in…

Q: which of the following cause the public to expect a depreciation of domestic currency? (there are…

A: When import demand rises, demand for foreign currency rises, which appreciates foreign currency and…

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: Display graphically changes in the current value of domestic currency, if the domestic currency…

A: We are going to use theories related to Exchange Rates and Open-Economy to answer this question.

Q: flexible exchange rate because aggregate economic policies will be more effective. it is less costly…

A: a) A fixed exchange rate is preferable to a flexible exchange rate because aggregate economic…

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 :

Q: If the euro appreciates relative to the U.S. dollar, then:   Question 4 options:   The dollar will…

A: The foreign exchange market is the market where currencies of different countries are bought and…