A. the value of other currencies will rise relative to the dollar
B. the dollar will depreciate relative to other currencies
C. the price of foreign goods will become cheaper to Canadians
D. the price of foreign goods will rise for Canadians
Related Mcqs:
- Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium economic theory suggests that the nation’s balance of payments would move into a surplus position if there occurred in the nation a (an) ?
A. increase in the money demand
B. decrease in the money demand
C. increase in the money demand
D. None of the above - Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium its balance of payments would move into a surplus position if there occurred in the nation a (an) ?
A. decrease in the money supply
B. increase in the money supply
C. decrease in the money demand
D. None of the above - With free trade, suppose that the rest of the world can supply calculators to Canada at a price of $30. Canada’s imports would now equal _____ and its consumer surplus would ____ relative to what occurred in the absence of trade. What is the change in consumer surplus? Refer to the figure that you have plotted ?
A. 20 calculators increase
B. 25 calculators decrease
C. 25 calculators increase
D. 30 calculators increase - 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 - If Japan runs current account deficit and exchange rates are floating?
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 - If there is a balance of payments deficit then in a floating exchange rate system ?
A. The external value of the currency would tend to fall
B. The external value of the currency would tend to rise
C. The injections from trade are greater then the withdrawals
D. Aggregate demand is increasing - 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 - 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 - 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 - Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _______ and ________ ?
A. buy foreign exchange, sell domestic currency
B. sell foreign exchange buy domestic currency
C. buy foreign exchange buy domestic currency
D. sell foreign exchange sell domestic currency
