Name Qaie-International finance-MC Ir the lapanese yen apprecianes relative so t
ID: 1121985 • Letter: N
Question
Name Qaie-International finance-MC Ir the lapanese yen apprecianes relative so the Sweodish kroma, then the kroma: A) will be more expeusive to the Japanese )will deprociate relative to the yen ) may either appeeciane o depreciate relative to the yen D) will appeeciale relative to the 2. If the exchange rase changes from $1 -20 francs to S1 - 30 francs: A) the dollar has neither appecciated nor but the franc has appeeciasod in vale B) U.S. exports to France will increase. C) the dollar has depreciated in valuc. has appreciated in value A Appreciation of the Mexican peso will: A) increase Mexican exports B) make Mexico's exports less expensive and its make Mexico's exports moee expensive and its imports less expensive. D) make Mexioo's exports and imports bodh more 4. Deprecianion of the deillar will: A) increase the prices of both U.S. imports and exports B) decrease the prices ofboth US imports and exports. C) decrease the prices of US, imponts, but increase the prices of U.S. exports. D) increase the prices of U.S. impoerts, but decrease the prices or U.S. exports 5. A change in the dollar price of yen from $1-100 yen to $1-50 yen will: A) increase U.S exports and depeess Japanese esports B) increase Japanese exports and depress U.S exports C) make U.S. goods more expensive to the Japanese. D) make Japanese goods less expensive to Amsericans & If incomes rise rapidly in the United States and U.S. preferences for foreign goods strengthen, we would expect A) the dollar to appreciate in value. B) the dollar to depreciate in value Q US expors to increase. D) the dollar price of foreign monies to decrease onies to 7. If the equilabrium exchange rate changes so that it takes more dollars to buy a British pound, then: A) de dollar hasdepreciated.a value. B)the British buy fewer Us. gods. B) the dollar has approciated in value. D) Americans will import more British goods . Mexican imports of U.S goods will: A) create a supply of dollars. B) have no effect on the peso-dollar exchange raie. C) create a supply of pesos. D) reduce the demand for dollars. 9, Long-term trends in he exchange rate are caused by factors, while day-to-day volatility is more likely to be the result of A. interest t rate differentials; technical factors B. technical; new products and other fundamental factors C.fundamental; changing interest rate differentials D. volatile; fundamental fEactors 10. A change in Fed policy from "tight money" to "easy money.. puts pressure on the interest rate and thus tends to of the dollar A downward, depreciation B. downward, appreciation C.upward, depreciation D. upward, appreciation low the forcign rate causes a huge capital I 11. With perfect capital mobility, a Fed policy that lowers the U.S. interest rate be A inflow, appreciate B. inflow, depreciate C. outlow, appreciate D. outflow, depreciate that puts pressure on the dollar to 12. In a large open economy model under fixed exchange rates, fiscal policy A remains totally inefective. B. loses some of its effectiveness. C. maintains the same degree of effectiveness. D.gains extra effectiveness. 13. In a large open economy model under flexible exchange rates, fiscal policy A. remains totally ineffective. B. loses some of its effectiveness C. maintains the same degree of effectiveness. extra effectiveness. D. gains 14. Suppose the U.S policy mix remains constant while major European nations switch to an expansionary fiscal (provide more stimulus) and tighter monetary policy. With European interest rates, the resulting of the dollar eventually tends to the US. foreign trade deficit. A higher, depreciation, decrease B. higher, appreciation, increase C.higher, appreciation, decrease increase E. lower, appreciation, decrease D. lower, depreciationExplanation / Answer
1. B
Explanation: If yen appreciates relative to Krona, it means the purchasing power of yen has increased as compared to Kora. So, the krona has depreciated with respect to yen.
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