Question 1

All these factors affect a country's exchange rates,except

Accepted Answer

A) Inflation 
B) Interest rates 
C) Employment 
D) Price levels 
A) Inflation 
B) Interest rates 
C) Employment 
D) Price levels

Question 2

Holding other things constant,an increase in the inflation rate in US compared to the Chinese economy may cause the demand for dollar to _____________ and the supply for dollar to __________.

Accepted Answer

A) Increase;decrease 
B) Increase,increase 
C) Decrease;Increase 
D) Decrease;Decrease 
A) Increase;decrease 
B) Increase,increase 
C) Decrease;Increase 
D) Decrease;Decrease

Question 3

If US consumers want to buy Chinese goods,they will

Accepted Answer

A) buy Yuans to sell US Dollars 
B) Sell Yuans to buy US Dollars 
C) Demand Yuan 
D) Both a and c 
A) buy Yuans to sell US Dollars 
B) Sell Yuans to buy US Dollars 
C) Demand Yuan 
D) Both a and c

Question 4

When interest rates go up,people are

Accepted Answer

A) more likely to borrow 
B) less likely to borrow 
C) does not affect a person's consumption 
D) None of the above 
A) more likely to borrow 
B) less likely to borrow 
C) does not affect a person's consumption 
D) None of the above

Question 5

Holding other things constant,a depreciation of the US Dollar to the Kenyan Shilling might cause the demand for Shilling to _____________ and the supply for Shilling to __________.

Accepted Answer

A) Increase;decrease 
B) Increase,increase 
C) Decrease;Increase 
D) Decrease;Decrease 
A) Increase;decrease 
B) Increase,increase 
C) Decrease;Increase 
D) Decrease;Decrease

Question 6

A term to describe one currency in terms of another is

Accepted Answer

A) Interest rates 
B) Market price 
C) Inflation rate 
D) Exchange rate 
A) Interest rates 
B) Market price 
C) Inflation rate 
D) Exchange rate

Question 7

Currency devaluations help suppliers because they make exports ________ expensive in the _____________ currency.

Accepted Answer

A) Less;domestic 
B) Less;foreign 
C) More;domestic 
D) More;foreign 
A) Less;domestic 
B) Less;foreign 
C) More;domestic 
D) More;foreign

Question 8

The purchasing power parity predicts that if US price level rises relative to the Mexico price level,then

Accepted Answer

A) Dollar value will rise relative to the peso 
B) Dollar value will fall relative to the peso 
C) There is no effect on either currency 
D) PPP predicts price level will normalize in the long-run 
A) Dollar value will rise relative to the peso 
B) Dollar value will fall relative to the peso 
C) There is no effect on either currency 
D) PPP predicts price level will normalize in the long-run

Question 9

The intersection between demand of US dollar and the supply of US dollar is known as

Accepted Answer

A) Inflation rate 
B) Exchange rate 
C) Price 
D) Quantity 
A) Inflation rate 
B) Exchange rate 
C) Price 
D) Quantity

Question 10

When interest rates go down,people are

Accepted Answer

A) more likely to borrow 
B) less likely to borrow 
C) does not affect a person's consumption 
D) None of the above 
A) more likely to borrow 
B) less likely to borrow 
C) does not affect a person's consumption 
D) None of the above

All these factors affect a country's exchange rates,except

Holding other things constant,an increase in the inflation rate in US compared to the Chinese economy may cause the demand for dollar to ___ and the supply for dollar to .

If US consumers want to buy Chinese goods,they will

When interest rates go up,people are

Holding other things constant,a depreciation of the US Dollar to the Kenyan Shilling might cause the demand for Shilling to ___ and the supply for Shilling to .

A term to describe one currency in terms of another is

Currency devaluations help suppliers because they make exports expensive in the _____ currency.

The purchasing power parity predicts that if US price level rises relative to the Mexico price level,then

The intersection between demand of US dollar and the supply of US dollar is known as

When interest rates go down,people are

The One Lessor of Business

Benefits, Costs, and Decisions

Extent How Muchdecisions

Investment Decisions: Look Ahead and Reason Back

Simple Pricing

Economies of Scale and Scope

Understanding Markets and Industry Changes

Market Structure and Long-Run Equilibrium

Strategy: the Quest to Keep Profit From Eroding

More Realistic and Complex Pricing

Direct Price Discrimination Indirect Price Discrimination

Strategic Games

Bargaining

Making Decisions With Uncertainty

Auctions

The Problem of Adverse Selection

The Problem of Moral Hazard

Getting Employees to Work in the Firms Best Interest

Getting Divisions to Work in the Firms Best Interest

Managing Vertical Relationships

Filters

Exam 11: Foreign Exchange, trade, and Bubbles

All these factors affect a country's exchange rates,except

Holding other things constant,an increase in the inflation rate in US compared to the Chinese economy may cause the demand for dollar to _____________ and the supply for dollar to __________.

If US consumers want to buy Chinese goods,they will

When interest rates go up,people are

Holding other things constant,a depreciation of the US Dollar to the Kenyan Shilling might cause the demand for Shilling to _____________ and the supply for Shilling to __________.

A term to describe one currency in terms of another is

Currency devaluations help suppliers because they make exports ________ expensive in the _____________ currency.

The purchasing power parity predicts that if US price level rises relative to the Mexico price level,then

The intersection between demand of US dollar and the supply of US dollar is known as

When interest rates go down,people are

The One Lessor of Business

Benefits, Costs, and Decisions

Extent How Muchdecisions

Investment Decisions: Look Ahead and Reason Back

Simple Pricing

Economies of Scale and Scope

Understanding Markets and Industry Changes

Market Structure and Long-Run Equilibrium

Strategy: the Quest to Keep Profit From Eroding

More Realistic and Complex Pricing

Direct Price Discrimination Indirect Price Discrimination

Strategic Games

Bargaining

Making Decisions With Uncertainty

Auctions

The Problem of Adverse Selection

The Problem of Moral Hazard

Getting Employees to Work in the Firms Best Interest

Getting Divisions to Work in the Firms Best Interest

Managing Vertical Relationships

Filters

Holding other things constant,an increase in the inflation rate in US compared to the Chinese economy may cause the demand for dollar to ___ and the supply for dollar to .

Holding other things constant,a depreciation of the US Dollar to the Kenyan Shilling might cause the demand for Shilling to ___ and the supply for Shilling to .

Currency devaluations help suppliers because they make exports expensive in the _____ currency.