A. fluctuate more than it would do otherwise
B. appreciate
C. depreciate
D. not be affected
Related Mcqs:
- In the Px = export price index, Pm = import price index, Qx = export quantity index,and Qm = import quantity index. Developing countries tend to maintain that their commodity term of trade have declined over the long run suggesting that _________ has declined?
A. Px/Pm
B. Pm/Px
C. (Pm/Px)Qm
D. (Px/Pm)Qx - Similar to import tariffs import quotas tend to result in ?
A. higher prices and reduced imports
B. increased government revenue
C. increased consumer surplus
D. decrease producer surplus - If Toyota describes one of its cars of the future as being a moderately priced subcompact designed as a second family car to be used arround town; the car is ideal for running errands and visiting friends, then the company has just stated a potential new product in terms of a(n) ?
A. Product idea
B. Product image
C. Product concept
D. Product features - Nicole wants to avoid buying a car that is a lemon. She takes a car she would like to buy to her mechanic before she purchases it. This is known as ?
A. screening
B. signaling
C. moral hazard
D. adverse selection - 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 Pakistan takes part in a war in the Middle East, then the exchange value of its currency will tend to ?
A. depreciate
B. not be affected
C. fluctuate more than if it were at peace
D. appreciate - If Pakistan’s incomes rise faster than those in most other countries the the exchange value will tend to ?
A. fluctuate more than it would do otherwise
B. appreciate
C. depreciate
D. not be affected - If the Pakistan receives larger than expected revenues from exports then the exchange value of its currency will tend to ?
A. not be affected
B. fluctuate more than if exports were lower
C. depreciate
D. appreciate - 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 - 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
