Given a system of floating exchange rates rising income in the United States would trigger a (an) ?

Related Mcqs:

1. Given a system of floating exchange rates falling income in the United States would trigger a (an) ?

   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

2. Under a system of floating exchange rates relatively low productivity and high inflation rates in the United States results in a (an) ?

   A. increase in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar
   B. increase in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar
   C. decrease in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar
   D. decrease in the demand for foreign currency and increase in the supply of foreign currency and a appreciation in the dollar

3. Under a system of floating exchange rates relatively high productivity and low inflation rates in the United States results in a (an) ?

   A. increase in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar
   B. increase in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar
   C. decrease in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar
   D. decrease in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar

4. Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?

   A. depreciation
   B. appreciation
   C. fall
   D. devaluation

5. Under managed floating exchange rates if the rate of inflation in the United States is less than the rate of inflation of its trading partners the dollar will likely ?

   A. appreciates against foreign currencies
   B. depreciates against foreign currencies
   C. be officially revalued by the government
   D. be officially devalued by the government

6. During Periods of rising inflation and rising interest rates we expect the demand for real cash to ?

   A. rise
   B. fall
   C. not changes
   D. fluctuates

7. If one country, with floating exchange rates, has higher inflation than its competitors we would expect its exchange rate to ?

   A. appreciate
   B. depreciate
   C. revalue
   D. be in short supply

8. The theory of international exchange that holds that exchange rates adjust to offset differences in countries inflation rates in the ?

   A. price feedback theory
   B. trade feedback theory
   C. J-curve theory
   D. purchasing power parity theory

9. Suppose that rising U.S income leads to higher sales and profits in the United States This would likely result in ?

   A. increasing portfolio investment into the United States
   B. decreasing portfolio investment into the United States
   C. increasing direct investment into the United States
   D. decreasing direct investment into the United States

10. Which exchange rate system involves a leaning against the wind|| strategy in which short-term fluctuations in exchange rates are reduced without adhering to any particular exchange rate over the long run ?

    A. pegged of fixed exchange rates
    B. adjustable pegged exchange rates
    C. managed floating exchange rates
    D. free floating exchange rates