Exam 2: The Determination of Exchange Rates

the peso depreciates against the U.S dollar by 80%, the US dollar will appreciate against the peso by

most likely explanation for the rise of the U.S. dollar during the early 1980s is that the U.S.

Sound economic policies will

the euro depreciates against the U.S. dollar by 50%, the dollar appreciates against the euro by

the U.S. dollar appreciates against the euro by 25%, the euro will depreciate against the U.S. dollar

_______ for/of foreign currency in the U.S. is derived from the demand for ___________ by American consumers.

price of foreign goods in terms of domestic goods is called

U.S. dollar weakened during the 1970s for the following reasons EXCEPT

the following, exchange rates depend the most upon relative

Suppose that the Brazilian real devalues by 40% against the U.S. dollar. By how much will the dollar appreciate against the real?

Large government budget deficits will

______ is another name for the complete replacement of the local currency with the U.S. dollar.

French euro devalued by 17% against the U.S. dollar. This is equivalent to a revaluation of the dollar against the euro by

willingness of people to hold money

the dinar devalues against the U.S. dollar by 45%, the U.S. dollar will appreciate against the dinar by

July 19, 1985, the Italian lira devalued by 17% against the U.S. dollar. This is equivalent to a revaluation of the dollar against the lira of

During the 1994 peso problem, Mexico made a fundamental error by not allowing the ________ of pesos to fall.

some U.S. manufacturers and labor unions, a cheap yuan value gives China's __________ an unfair advantage in the global economy.

the U.S. dollar appreciates against the Nigerian naira by 150%, the naira depreciates against the dollar by

monetary authorities have not insulated their domestic money supplies from the foreign exchange transactions, it is known as ________ intervention.