If the euro appreciates relative to the U.S. dollar, then: Question 4 options: The dollar will appreciate relative to the euro American goods will be more expensive for Europeans The dollar will depreciate relative to the euro European goods will be less expensive for the Americans
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Question 4 options:
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The dollar will appreciate relative to the euro
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American goods will be more expensive for Europeans
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The dollar will depreciate relative to the euro
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European goods will be less expensive for the Americans
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- An appreciation of the dollar against all currencies in the foreign exchange market would result in all of the following, except: a) a decrease in the dollar prices paid by U.S. importers. b) an increase in the cost of vacations in Florida for Japanese tourists. c) foreign holidays for U.S. residents to be less expensive. d) an increase in the foreign currency prices paid for U.S. exports. e) an increase in the demand for U.S. exports.Who would demand U.S. dollars in the foreign exchange market? U.S. firms and households wishing to purchase foreign goods and services Foreigners wishing to purchase U.S goods and services U.S. households wishing to purchase U.S. goods and servicesIf the US dollar appreciated compared to the euro, what impact would it have on companies in the US? also, if the US dollar depreciated compared to the euro, what impact would it have on companies in the US?
- Quantity of Euros Supplied Price Quantity of Euros Demanded 400 $1.10 100 360 1.00 200 300 0.90 300 286 0.80 400 287 0.70 500 The table shows the supply and demand schedules for the European euro. Under a flexible exchange-rate system, what will be the euro rate of exchange for one U.S. dollar? Multiple Choice 0.95 euro 1.00 euros 1.11 euros 1.23 eurosUse the following table, which shows the supply and demand schedules for the euro, to answer the next question. Quantity of Euros Price Supplied 400 360 300 286 267 Multiple Choice $1.10 1.00 0.90 0.80 0.70 O If the U.S. government decides to fix or peg the price of the euro at $1.00, it would have to buy 360 euros. sell 160 euros. buy 100 euros. Quantity of Euros Demanded 100 sell 360 euros. 200 300 400 500You own a local company. In the past year, you successfully expanded your sales market into Europe, and you now have profits and cash denominated in euros. You want to convert the euros to your home country currency to repatriate the profits and pay taxes. You are a. not required to convert the euros to the home currency to pay taxes. b. a demander of the euro in the foreign exchange market. c. a supplier of your home country's currency in the foreign exchange market. d. a demander of your home country's currency in the foreign exchange market.
- Suppose that the U.S. dollar appreciates against the Japanese Yen. What will occur as a result? purchasing power parity will begin to hold U.S. exports to Japan will become cheaper and increase, imports from Japan to the U.S. will become more expensive and decline U.S. currency becomes over-valued relative to Japanese currency U.S. exports to Japan will become more expensive and decline, imports from Japan to the U.S. will become cheaper and increaseIf there was an sudden change in exchange rates that resulted in fewer US Dollars being required to buy a Euro, you could expect the dollar to depreciate quicker than the Euro European travel to America to increase Europeans to buy more American products American to buy more European productsIf the U.S. income level rises at a much higher rate than does the Eurozone income level. Other things being equal, how should this affect the: (a) U.S. demand for Euro, (b) supply of Euro for sale, and (c) equilibrium value of Euro?
- Display graphically changes in the value of domestic currency, if foreign consumers develop stronger preferences for some kind of domestic goodsPrices in Country A sharply rose due to a supply shortage and led to high levels of inflation in the economy. What effect is this price increase likely to have on domestic currency in the foreign exchange market? Country A's domestic currency will see an appreciation, in relation to currencies of other trading partners. Country A's domestic currency will see both appreciation and depreciation, in relation to currencies of other trading partners. Country A's domestic currency will see no change, in relation to currencies of other trading partners. Country A's domestic currency will see a depreciation, in relation to currencies of other trading partners. There is insufficient information to draw a conclusion.QUESTION 19When the Australian dollar appreciates, we know that, other things equal: the dollar is less expensive to foreigners. foreign goods are less expensive to Australians. foreign currency is more expensive to Australians. Australian goods are less expensive to foreigners. none of the above