Demand for $NZ will rise if Select one: a.New Zealand imports increase. b.New Zealand exports increase. c.New Zealand interest rates fall. d.Australian interest rates rise.
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- Malaysian exports create a. Supply of foreign currencies to Malaysia and a demand for RM in foreign countries. b. Demand of foreign currencies to Malaysia and supply for RM in foreign countries. c. Demand of foreign currencies to Malaysia and a demand for RM in foreign countries. d. Supply of foreign currencies to Malaysia and a supply for RM in foreign countries.What is bought and sold in the foreign exhange market?A rise in the domestic price level in an economy will lead to a _____. a.Fall in imports b.Rise in imports c.None of these d.Rise in exports
- 8. Incomes of U.S. farmers tend to be boosted by: A. Very good harvests on farms abroadB. Economic weakness in Europe and Southeast AsiaC. Increased protectionism in farm policies abroadD. A depreciation of the U.S. dollarWhat happens if there is a shortage or a surplus of Canadian dollars in the foreign exchange market? *** If a shortage of Canadian dollars occurs in the foreign exchange market, the and the exchange rate A O A. quantity of Canadian dollars demanded increases and the quantity of Canadian dollars supplied decreases; falls OB. demand for Canadian dollars increases and the supply of Canadian dollars decreases; rises OC. quantity of Canadian dollars demanded decreases and the quantity of Canadian dollars supplied increases; COLL 120- 110 100+ 90- 80- 70- Exchange rate (U.S. cents per Canadian dollar) S 60+ DColombia is the world’s biggest producer of roses. The global demand for rosesincreases and at the same time Colombia’s central bank increases the interest rate.In the foreign exchange market for Colombian pesos, what happens to: The quantity of pesos demanded?iv. The quantity of pesos supplied?
- Holding other things constant, an appreciation of anation’s currency causesa. exports to rise and imports to fall.b. exports to fall and imports to rise.c. both exports and imports to rise.d. both exports and imports to fall.A relatively small U.S. balance-of-trade deficit is commonly attributed to a strong demand for U.S. exports. What do you think is the underlying reason for the strong demand for U.S. exports? Cite example that prove your reasons.D 0 Question 15 91000 AERIN Iris Meado Question 16 BRACELETSIALE... Cigarettes and nicotine patches have a positive but small cross-price elasticity. Ceteris paribus, a cigarette tax on consumers would imply that: Ceteris paribus, the Australian dollar nominal exchange rate: O There will be a large movement up the demand and supply curve of cigarettes and demand for nicotine patches would rise by a large amount O Demand for cigarettes would fall and demand for nicotine patches would fall by a small amount O The demand for cigarettes would fall and demand for nicotine patches would rise by a small amount O There will be a small movement up the demand and supply curve of cigarettes and demand for nicotine ches would fall by a large amount UTS O will rise if Australian interest rates fall O will fall if Australian inflation falls relative to inflation in our trading partners will fall if Australian interest rates rise will rise if Australia's trading partners income rises The Eleventh…
- A9. If the Canadian dollar loses value, and it costs Canadian supermarkets more to import bananas from Central America, will the stores pass on the higher prices to consumers immediately? If they allow the price of bananas to rise gradually over a period of time to reflect the higher costs, what will happen to banana imports? Why?PQ 8 The simple Marshall-Lerner condition would suggest that one of the following cases would produce a worsening of the trade balance if the country's currency depreciated. Which one? (The negative sign on elasticities is being ignoredf; also, assume that trade is initailly balanced) a. elasicity of demand for exports = .8; elasticity of demand for imports = .5 b. elasicity of demand for exports = .4; elasticity of demand for imports = .6 c. demand curve for exports is verttical; demand curve for imports is horizontal d. elasticity of demand for exports = .8; elasticity of demand for imports = .1When the dollar appreciates, U.S. Select one: O a. exports and imports increase. O b. exports decrease, while imports increase. C. exports increase. while imports decrease. O d. exports and imports decrease.