27. If inflation in New Zealand suddenly increased while U.S. inflation stayed t

Question

27. If inflation in New Zealand suddenly increased while U.S. inflation stayed the same, there would be: a. an inward shift in the demand schedule for NZS and an outward shift in the supply schedule for NZ$ b. an outward shift in the demand schedule for NZS and an inward shift in the supply schedule for NZ$ an outward shift in the demand schedule for NZS and an outward shift in the supply schedule for NZS. an inward shift in the demand schedule for NZS and an inward shift in the supply schedule for NZS c. d. 28. Assum e that British corporations begin to purchase more supplies from the U.S. as a result of several labor strikes by British suppliers. This action reflects: a. an increased demand for British pounds. b. a decrease in the demand for British pounds. c. an increase in the supply of British pounds for sale. d. a decrease in the supply of British pounds for sale. 29. Any event that increases the U.S. demand for euros should result in a(n) in the value of the euro with respect toother things being equal. a. increase; U.S. dollar b. increase; nondollar currencies c. decrease; nondollar currencies d. decrease; U.S. dollar 30. An increase in U.S. inflation relative to Singapore inflation places upward pressure on the Singapore dollar. a. True b. False 31. The value of euro was $1.30 last week. During last week the euro depreciated by 5%, what is value of euro today? a. $1.365 b. $1.235 c. $1.330 d. $1.30

Explanation / Answer

Ans 28)

When Purchase of more supplies of US needs higher amount Dollars that would increase the demand of USD and decrease the demand of Pounds

Option B is correct response

Ans 29)

It eill decrease the value of euro with respect to USD hence option D is correct response

Ans 30)

An increase in inflation for US would impart downward pressure on USD hence the upward pressure on SIngapore Dollar

True is the correct answer

Ans 31)

$1.30*1.05=$1.365

Option A is correct response

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