A. flows of foreign investment into the United States
B. rising price inflation in the United States
C. a substantial decrease in U.S imports
D. a substantial increase in U.S exports
Related Mcqs:
- A primary reason that explains the appreciation in the value of U.S dollar would be ?
A. large trade surpluses for the United States
B. high inflation rates in the United States
C. lack of investor confidence in U.S money policy
D. high interest rates in the United States - The appreciation in the value of the dollar in the early 1980s is explained by all of the following except ?
A. the United States being considered a safe haven by foreign investors
B. relatively high real interest rates in the United States
C. confidence of foreign investors in the U.S economy
D. relatively high inflation rates in the United States - Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?
XA. wages and rents should fall in Country A
B. wages and rents should rise in Country A
C. wages should rise and rents should fall in Country A
D. wages should fall and rents should raise in Country A - Suppose that U.S dollar depreciates 70 percent against the yen yet Japanese export prices to Americans did not decrease by the full extent of the dollar depreciation. This is best explained by ?
A. partial currency pass through
B. complete currency pass through
C. partial J curve effect
D. complete J curve effect - The main reason why land reform increase agricultural output is that is ?
A. encourages mechanization
B. allows the farmers to set the prices for their agricultural products
C. enables farmers to escape the problem of diminishing return
D. makes farmers owners of the land instead of tenants and owners’ farmers are more productive than tenant farmers - What type of trade barrier was used to protect U.S auto firms from foreign competition during 1981 – 1984 ?
A. export quotas imposed by the Japanese government
B. export tariffs imposed by the Japanese’s government
C. import quotas imposed by the U.S government
D. domestic subsidies granted by the U.S government - Which of the following is not a reason why Joe Smith (an American) might participate as a demander in the foreign exchange market ?
A. his desire to open a bank account in Japan
B. his desire to purchase an automobile produced domestically
C. his desire to travel to Europe
D. his desire to purchase Treasury bills issued by the British government - If currency dealers expect the value of the pound to fall, the exchange value will tend to ?
A. depreciate
B. not be affected
C. fluctuate more than it would do therwise
D. appreciate - If export contracts are written in terms of foreign currency and import contracts are denominated in domestic currency a depreciation of the dollar during the currency contract period ?
A. should increase the dollar value of exports
B. should not have any effect on the dollar value of U.S imports
C. must increase the balance of trade
D. All of the above - The Baker plan (1985) stressed _______ and the Brady Plan (1989) emphasized _______ respectively?
A. IMF decentralization; World Bank dissolution
B. new loans from multilateral agencies and surplus countries; debt reduction or write-downs
C. structural adjustment loans for LDCs experiencing unanticipated external shocks; renewed emphases on macroeconomic stabilization programs
D. debt relief for at leas three-fourths of the eligible HIPCs; shorter requirements for adjustment programs
