A. depreciate and would increase UK net exports
B. appreciate and would increase UK net exports
C. depreciate and would decrease UK net exports
D. appreciate, but the total value of UK net export stays the same
Related Mcqs:
- When the $/£ exchange rate rises the pound _____ and when the $/£ rates falls the pound ________?
A. depreciates, appreciates
B. revalues, devalues
C. appreciates, depreciates
D. becomes more expensive becomes cheaper - In the early eighties, the Federal Reserve pursed a tight monetary policy. All else being equal. the impact of that policy was to interest rates in the United States relative to those in Europe and cause the dollar to _______ against European currencies?
A. decrease; depreciate
B. decrease; appreciate
C. increase; depreciate
D. increase; appreciate - Starting from a balanced budget, for a given tax rate, an increasing in income will cause the government budget to ?
A. move into surplus
B. move into deficit
C. remain unchanged
D. None of the above above - If as the quantity produced increase a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will ?
A. be flat (horizontal)
B. slope upward
C. slope downward
D. be U-shaped. - Suppose, due to political instability, Russians suddenly choose to purchase UK assets as opposed to Russian assets Which of the following statements is true regarding the value of the pound and UK net exports ?
A. The pound appreciates, and UK net exports rise
B. The pound appreciates, and UK net exports fall
C. The pound depreciates, and UK net exports rise
D. The pound depreciates, and UK net exports fall - 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 the US economy is forecast to come out of recession because military expenditure has increase then the exchange value of the UK pound will tend to ?
A. depreciate
B. not be affected
C. fluctuate more than it would do therwise
D. appreciate - If British residents want more French francs to purchase more French cloths other things equal, then the equilibrium value of the pound against the French franc will ?
A. rise
B. fall
C. not change
D. fluctuate - If the exchange rate between Swiss francs and British pounds is 5 francs per pound, then the number of pounds that can be obtained for 200 francs equals ?
A. 20 pounds
B. 40 pounds
C. 60 pounds
D. 80 pounds - Suppose that the United Kingdom devalues the pound if both exports and imports are written in terms of pounds then the United Kingdom balance of trade during a currency contract period ?
A. improves
B. worsens
C. is unaffected
D. falls for a while before increasing
