Exchange-Rate Determination

A. 0.67 pesos = $1
B. 0.8 pesos = $1
C. 1.25 pesos = $1
D. 1.67 pesos = $1

A. appreciation; trade surplus
B. appreciation; trade deficit
C. depreciation; trade surplus
D. depreciation; trade deficit

A. flow from the United States to foreign countries
B. flow from foreign countries to the United States
C. remain totally in foreign countries
D. remain totally in the United States

A. decrease in the money supply
B. increase in the money supply
C. decrease in the money demand
D. None of the above

A. faster economic growth than Japan
B. higher future interest rates than Japan
C. more rapid money supply growth than japan
D. higher inflation rates than japan

A. increase in the demand for imports and an increase in the demand for foreign currency
B. increase in the demand for imports and a decrease in the demand for foreign currency
C. decrease in the demand for imports and an increase in the demand for foreign currency
D. decrease in the demand for imports and a decrease in the demand for foreign currency

A. The United States to Japan causing the dollar to depreciate
B. The United States to Japan causing the dollar to appreciate
C. The Japan to United States, causing the dollar to depreciate
D. The Japan to United States, causing the dollar to appreciate

A. Japanese exports become more expensive to foreign buyers
B. Japanese exports become less expensive for foreign buyers
C. Japanese imports become less expensive for German buyers
D. Japanese imports become more prestigious to German buyers

A. the Canadian current account balance is in surplus
B. the Swiss current account balance is in deficit
C. the Canadian current account balance is in equilibrium
D. the Swiss current account balance is in equilibrium

A. an excess supply of that currency exists in the foreign exchange market
B. an excess demand for that currency exists in the foreign exchange market
C. the supply of foreign exchange shifts outward to the right
D. the supply of foreign exchange shifts backward to the left