The following table provides nominal exchange rates for the U.S. dollar. \[\begin{array} { l c c } { \text { Country } } & \text { Foreign currency/dollar } & \text { Dollar/foreign currency } \\ \text { Poland (zloty) } & 4.367 & .229 \\ \text { South Africa (rand) } & 6.944 & .144 \end{array}\] Based on these data, the nominal exchange rate equals approximately ______ zloty per South African rand or, equivalently, ______ rand per Polish zloty.

A) 1.590; 0.629 B) 0.629; 1.590 C) 0.021; 47.640 D) 47.640; 0.021 A) 1.590; 0.629 B) 0.629; 1.590 C) 0.021; 47.640 D) 47.640; 0.021

Exam 15: Aggregate Demand, Aggregate Supply, and Inflation

All else being equal, if Asian restaurants switch from serving French champagne to serving California wines, then the market equilibrium value of the exchange rate for the U.S. dollar will:

(Multiple Choice)

4.9/5

(35)

Question 101

In an open economy, a decrease in the government's budget deficit will the domestic real interest rate and the level of capital investment in the country, holding other factors constant.

(Multiple Choice)

4.9/5

(38)

Question 102

The U.S. dollar exchange rate, e, where e is the nominal exchange rate expressed as Japanese yen per U.S. dollar, will appreciate when:

(Multiple Choice)

4.9/5

(38)

Question 103

Suppose the price of gold is $300 per ounce in the United States and 2,400 pesos per ounce in Mexico. If purchasing power parity holds then, if the price of oil is 200 pesos per barrel in Mexico, the price of oil is ______ per barrel in the United States.

(Multiple Choice)

4.7/5

(30)

Question 104

For a given nominal exchange rate and foreign price level, an increase in the domestic price level ______ the real exchange rate.

(Multiple Choice)

4.8/5

(39)

Question 105

If domestic saving is greater than domestic investment, then a country will have a and positive net capital .

(Multiple Choice)

4.9/5

(43)

Question 106

The purchasing power parity theory is a reasonably good explanation for nominal exchange rate determination:

(Multiple Choice)

4.8/5

(32)

Question 107

If a certain automotive part can be purchased in Mexico for 32 pesos or in the United States for $5.25, and if the nominal exchange rate is 8 pesos per U.S. dollar, then the automotive part:

(Multiple Choice)

4.7/5

(32)

Question 108

An economy with a trade surplus must also have:

(Multiple Choice)

5.0/5

(25)

Question 109

The price of gold is $300 per ounce in New York and 2,550 pesos per ounce in Mexico City. If the law of one price holds for gold, the nominal exchange rate is ______ pesos per U.S. dollar.

(Multiple Choice)

4.8/5

(47)

Question 110

An exchange rate that is set by official government policy is called a ______ exchange rate.

(Multiple Choice)

4.7/5

(37)

Question 111

The following table provides nominal exchange rates for the U.S. dollar. Country Foreign currency/dollar Dollar/foreign currency Poland (zloty) 4.367 .229 South Africa (rand) 6.944 .144 Based on these data, the nominal exchange rate equals approximately zloty per South African rand or, equivalently, rand per Polish zloty.

(Multiple Choice)

4.9/5

(37)

Question 112

An increase in the nominal exchange rate, e, defined as the number of units of the foreign currency that one unit of the domestic currency will buy, indicates that the domestic currency has ______ relative to the foreign currency.

(Multiple Choice)

4.9/5

(36)

Question 113

Net capital outflows equal:

(Multiple Choice)

4.8/5

(36)

Question 114

As the dollar exchange rate, e, increases, the quantity of dollars supplied in the foreign exchange market , and the quantity of dollars demanded in the foreign exchange market .

(Multiple Choice)

4.9/5

(25)

Question 115

When a U.S. restaurant purchases French wine and the French wine company uses the proceeds to buy U.S. government debt, U.S. and there is a capital to/from the United States.

(Multiple Choice)

4.7/5

(34)

Question 116

According to the theory of purchasing power parity, the real exchange rate between two currencies will equal ______ in the long run.

(Multiple Choice)

4.9/5

(35)

Question 117

All else being equal, if the prospect of a recession leads the Federal Reserve to ease monetary policy, the equilibrium value of the exchange rate for the U.S. dollar will:

(Multiple Choice)

4.8/5

(41)

Question 118

European households wishing to purchase shares of stock in an American company are ______ the foreign exchange market.

(Multiple Choice)

4.8/5

(28)

Question 119

European firms wishing to purchase American goods and services are ______ the foreign exchange market.

(Multiple Choice)

4.7/5

(39)

Question 120

Showing 101 - 120 of 130

All else being equal, if Asian restaurants switch from serving French champagne to serving California wines, then the market equilibrium value of the exchange rate for the U.S. dollar will:

In an open economy, a decrease in the government's budget deficit will the domestic real interest rate and the level of capital investment in the country, holding other factors constant.

The U.S. dollar exchange rate, e, where e is the nominal exchange rate expressed as Japanese yen per U.S. dollar, will appreciate when:

Suppose the price of gold is $300 per ounce in the United States and 2,400 pesos per ounce in Mexico. If purchasing power parity holds then, if the price of oil is 200 pesos per barrel in Mexico, the price of oil is ______ per barrel in the United States.

For a given nominal exchange rate and foreign price level, an increase in the domestic price level ______ the real exchange rate.

If domestic saving is greater than domestic investment, then a country will have a and positive net capital .

The purchasing power parity theory is a reasonably good explanation for nominal exchange rate determination:

If a certain automotive part can be purchased in Mexico for 32 pesos or in the United States for $5.25, and if the nominal exchange rate is 8 pesos per U.S. dollar, then the automotive part:

An economy with a trade surplus must also have:

The price of gold is $300 per ounce in New York and 2,550 pesos per ounce in Mexico City. If the law of one price holds for gold, the nominal exchange rate is ______ pesos per U.S. dollar.

An exchange rate that is set by official government policy is called a ______ exchange rate.

An increase in the nominal exchange rate, e, defined as the number of units of the foreign currency that one unit of the domestic currency will buy, indicates that the domestic currency has ______ relative to the foreign currency.

Net capital outflows equal:

As the dollar exchange rate, e, increases, the quantity of dollars supplied in the foreign exchange market , and the quantity of dollars demanded in the foreign exchange market .

When a U.S. restaurant purchases French wine and the French wine company uses the proceeds to buy U.S. government debt, U.S. and there is a capital to/from the United States.

According to the theory of purchasing power parity, the real exchange rate between two currencies will equal ______ in the long run.

All else being equal, if the prospect of a recession leads the Federal Reserve to ease monetary policy, the equilibrium value of the exchange rate for the U.S. dollar will:

European households wishing to purchase shares of stock in an American company are ______ the foreign exchange market.

European firms wishing to purchase American goods and services are ______ the foreign exchange market.

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Macroeconomics: the Birds-Eye View of the Economy

Measuring Economic Activity: Gdp and Unemployment

Measuring the Price Level and Inflation

Economic Growth, Productivity, and Living Standards

Workers, Wages, and Unemployment

Saving and Capital Formation

Money, Prices, and the Federal Reserve

Financial Markets and International Capital Flows

Short-Term Economics Fluctuations: An Introduction

Spending and Output in the Short Run

Stabilizing the Economy: the Role of the Fed

Filters

Exam 15: Aggregate Demand, Aggregate Supply, and Inflation

All else being equal, if Asian restaurants switch from serving French champagne to serving California wines, then the market equilibrium value of the exchange rate for the U.S. dollar will:

In an open economy, a decrease in the government's budget deficit will ______ the domestic real interest rate and ______ the level of capital investment in the country, holding other factors constant.

The U.S. dollar exchange rate, e, where e is the nominal exchange rate expressed as Japanese yen per U.S. dollar, will appreciate when:

Suppose the price of gold is $300 per ounce in the United States and 2,400 pesos per ounce in Mexico. If purchasing power parity holds then, if the price of oil is 200 pesos per barrel in Mexico, the price of oil is ______ per barrel in the United States.

For a given nominal exchange rate and foreign price level, an increase in the domestic price level ______ the real exchange rate.

If domestic saving is greater than domestic investment, then a country will have a ______ and positive net capital ______.

The purchasing power parity theory is a reasonably good explanation for nominal exchange rate determination:

If a certain automotive part can be purchased in Mexico for 32 pesos or in the United States for $5.25, and if the nominal exchange rate is 8 pesos per U.S. dollar, then the automotive part:

An economy with a trade surplus must also have:

The price of gold is $300 per ounce in New York and 2,550 pesos per ounce in Mexico City. If the law of one price holds for gold, the nominal exchange rate is ______ pesos per U.S. dollar.

An exchange rate that is set by official government policy is called a ______ exchange rate.

An increase in the nominal exchange rate, e, defined as the number of units of the foreign currency that one unit of the domestic currency will buy, indicates that the domestic currency has ______ relative to the foreign currency.

Net capital outflows equal:

As the dollar exchange rate, e, increases, the quantity of dollars supplied in the foreign exchange market ____, and the quantity of dollars demanded in the foreign exchange market ____.

When a U.S. restaurant purchases French wine and the French wine company uses the proceeds to buy U.S. government debt, U.S. ______ and there is a capital ______ to/from the United States.

According to the theory of purchasing power parity, the real exchange rate between two currencies will equal ______ in the long run.

All else being equal, if the prospect of a recession leads the Federal Reserve to ease monetary policy, the equilibrium value of the exchange rate for the U.S. dollar will:

European households wishing to purchase shares of stock in an American company are ______ the foreign exchange market.

European firms wishing to purchase American goods and services are ______ the foreign exchange market.

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Macroeconomics: the Birds-Eye View of the Economy

Measuring Economic Activity: Gdp and Unemployment

Measuring the Price Level and Inflation

Economic Growth, Productivity, and Living Standards

Workers, Wages, and Unemployment

Saving and Capital Formation

Money, Prices, and the Federal Reserve

Financial Markets and International Capital Flows

Short-Term Economics Fluctuations: An Introduction

Spending and Output in the Short Run

Stabilizing the Economy: the Role of the Fed

Filters

In an open economy, a decrease in the government's budget deficit will the domestic real interest rate and the level of capital investment in the country, holding other factors constant.

If domestic saving is greater than domestic investment, then a country will have a and positive net capital .

As the dollar exchange rate, e, increases, the quantity of dollars supplied in the foreign exchange market , and the quantity of dollars demanded in the foreign exchange market .

When a U.S. restaurant purchases French wine and the French wine company uses the proceeds to buy U.S. government debt, U.S. and there is a capital to/from the United States.