QUESTION 3 A simultaneous increase in U.S. demand for German products and decrea

Question

QUESTION 3 A simultaneous increase in U.S. demand for German products and decrease in the desire of German investors to send funds to the United States would, under a flexible exchange rate system and with other things equal, lead to of the US. dollar against the euro and to of the euro against the dollar. o an appreciation; a depreciation o an appreciation; an appreciation o a depreciation; a depreciation o a depreciation; an appreciation QUESTION 4 The purchase of a British Rolls-Royce by a U.S. citizen would result in all of the following except a(n): Supply of payments to England O Sale of dollars and the purchase of British pounds O Increase in imports to the United States O Gain of foreign exchange for the United States

Explanation / Answer

3.

a depreciation; an appreciation

A depreciation is a fall in the value of a currency since the German investors do not wish to send the funds to US and German products demand by US citizens increase the value of the German currency relative to the US dollar would appreciate and the US dollar would depreciate.

4.

Gain of foreign exchange for the United States

Since the consumer is buying a British Rolls Royce it i, in essence, giving away foreign exchange.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.