A. the United States being considered a safe haven by foreign investors
B. relatively high real interest rates in the United States
C. confidence of foreign investors in the U.S economy
D. relatively high inflation rates in the United States
Related Mcqs:
- The high foreign exchange value of the U.S dollar in the early 1980s can best be explained by ?
A. additional investment funds made available from overseas
B. lack of investor confidence in U.S fiscal policy
C. market expectations of rising inflation in the United States
D. American tourists overseas finding costs increasing - During the era of dollar appreciation from 1981 to 1985 a main reason why the dollar did not fall in value was ?
A. flows of foreign investment into the United States
B. rising price inflation in the United States
C. a substantial decrease in U.S imports
D. a substantial increase in U.S exports - Suppose that U.S dollar depreciates 70 percent against the yen yet Japanese export prices to Americans did not decrease by the full extent of the dollar depreciation. This is best explained by ?
A. partial currency pass through
B. complete currency pass through
C. partial J curve effect
D. complete J curve effect - A primary reason that explains the appreciation in the value of U.S dollar would be ?
A. large trade surpluses for the United States
B. high inflation rates in the United States
C. lack of investor confidence in U.S money policy
D. high interest rates in the United States - Which statement best explains China’s economic shift towards capitalism in the 1980s and early 1990s ?
A. China’s economic policies were directly influenced by the success of the Soviet economic System
B. The Tiananmen Square massacre resulted in Major economic reforms in China
C. The success of the Cultural Revolution resulted in the increased westernization of china
D. communist economic policies were not meeting the needs of the society - 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 - Interindustry trade can be explained by all of the following except ?
A. high transportation costs as a proportion of product value
B. different growing seasons of the year for agricultural products
C. product differentiation for good such as automobiles
D. high per capita incomes in exporting countries - If a Big Mac hamburger sells for the same dollar value in New York as in London then ?
A. the inflation rate in each country will necessarily equal zero
B. the inflation rate in each country will necessarily equal 1 percent
C. the exchange rates are said to be fixed pegged to each other
D. purchasing power parity holds - The exchange value of the U.S dollar is primarily determined by ?
A. the rate of inflation in the United States
B. the number of dollars printed by the U.S government
C. the international demand and supply for dollars
D. the monetary value of gold held at Fort Knox, Kentucky - For the oil-importing countries, the increase in oil prices in 1970s and early 2000s contributed to all of the following except ?
A. balance of trade deficits
B. price inflation
C. constrained economic growth
D. improving terms of trade
