Suppose the government of Mexico runs a budget deficit. This will result in: O A. an increase in interest rates in Mexico and a decrease in the value of the peso relative to other currencies. B. a decrease in interest rates in Mexico and an increase in the value of the peso relative to other currencies. C. a decrease in interest rates in Mexico and a decrease in the value of the peso relative to other currencies. D. an increase in interest rates in Mexico and an increase in the value of the peso relative to other currencies.
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- If the Bank of Canada raises its target for the overnight interest rate from 3 percent to 3.25 percent while interest rates in other countries do not change, the result is of financial capital, in demand for Canadian dollars and of the Canadian dollar. O a. An outflow; a decrease; aldepreciation. O b. An inflow; a decrease; a depreciation. O c. An outflow; an increase; an appreciation. O d. An inflow; an increase; a depreciation. O e. An inflow; an increase; an appreciation.Currently, it takes two Belize dollars to buy a U.S. dollar. If that number were to rise to three, then the Belize currency would have (appreciated, depreciated) and it would be (more, less) expensive for American tourists to vacation in Belize. Select one: O a. depreciated; more O b. appreciated; less. O c. appreciated; more. O d. depreciated; less.What is the impact of a relatively high inflation rate in the domestic country on the foreign exchange rate? O a. Continuous fluctuation in domestic currency O b. No change in the value of domestic currency O C. Decrease in the value of home currency O d. Increase in the value of home currency
- Currency speculators sell Canadian dollars whenever they think that the Select one: O A. Canadian real GDP is increasing. B. world prices for Canadian resources are falling. C. Canadian inflation rate is falling. D. demand for Canadian dollars is increasing. O E. real interest rates will increase due to the Bank of Canada's policy. C MacBook Pro Search or type URLThe economy of Singapore is experiencing high economic growth. How will this growth affect inflation and exchange rates? O a. increase in inflation and a stronger currency O b. lower inflation and a weaker currency O c. lower inflation and a stronger currency O d. increase in inflation and a weaker currencySuppose one British pound can purchase 1.86 U.S. dollars today in the foreign exchange market, and currency forecasters predict that the U.S. dollar will depreciate by 12.00% against the pound over the next 30 days. How many dollars will a pound buy in 30 days? a. $2.2082 O b. $2.3540 O c. $2.1665 O d. $2.0832 e. $1.8957
- Which of the following would be classed as an expansionary monetary policy? O A. A decrease in the quantity of money. В. A decrease in interest rates. С. An increase in government taxation. O D. An increase in government expenditure. O E. An increase in VAT.Economy A has a stable price level-no inflation. Economy B is in a hyperinflation-prices are rising at a rate of 50 percent per month. Describe and explain the differences between these two economies in the money growth rate, the velocity of circulation, the nominal interest rate, and the frequency of wage payments. has a higher money growth rate because O A. Economy B; the equation of exchange holds in economies with hyperinflation but not in economies with stable prices B. Economy B; in the long run, money growth equals the inflation rate C. Economy A; economies with stable prices tend to have greater money growth O D. Economy A; the equation of exchange holds in economies with stable prices but not in economies with hyperinflation has a higher velocity of circulation and more frequent wage payments because, A. Economy B; the hyperinflation decreases the opportunity cost of holding money B. Economy A; the stable price level increases the opportunity cost of holding money O C. Economy…In 2020, inflation rate in UK is 4.5% and in Spain it is 4.1%. In 2021, inflation rate in UK is 7.3% and in Spain it is 6.9%. In 2020 1.47EURO / GBP. Assume UK is home country. What is the expected exchange rate in 2022 (2 years later)? Select one: O a. 0.675 O b. 1.465 O c. 1.464 O d. 1.459
- Under what circumstances does aggregate demand increase? Aggregate demand increases if expected future income, inflation, or profits .And aggregate demand increases if fiscal policy government expenditure. O A. decrease; decreases O B. increase; decreases O C. increase; increases O D. decrease; increases Aggregate demand increases if fiscal policy taxes or transfer payments. O A. decreases; increases O B. decreases; decreases O C. increases; decreases O D. increases; increases Aggregate demand increases if monetary policy the quantity of money and interest rates. O A. increases; increases O B. increases; decreases O C. decreases; increases O D. decreases; decreases or foreign income Aggregate demand increases if the exchange rate O A. increases; decreases Click to select your answer. MacBook Air DD DII F11 F10 :こ- F9 F8 888 F7 吕0 F6 F5 F4 F3 F2 esc F1 & $ # 7 ! 2 3 4 1 P Y W E R Q K D F G A S 00 TIf a country's currency depreciates, what would be the effect on the Bala Select one: O a. It becomes flatter. O b. A shift to the right. O c. It becomes steeper. Od. A shift to the left.When the Fed raises the federal funds rate, the US dollar and net exports O a. appreciates; decreases O b. does not change; decreases Oc does not change; does not change d. appreciates; increases O e. depreciates; decreases