A. faster economic growth than Japan
B. higher future interest rates than Japan
C. more rapid money supply growth than japan
D. higher inflation rates than japan
Related Mcqs:
- Which example of market expectations causes the dollar to depreciate against the yen – expectation that the U.S economy will have ?
A. faster growth than Japan
B. higher future interest rates than Japan
C. more rapid money supply growth than Japan
D. lower inflation rates than Japan - In a supply and demand diagram for Japanese yen, with the exchange rate in dollars per yen on the vertical axis, the demand schedule for yen is drawn sloping ?
A. upward
B. vertical
C. downward
D. horizontal - 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 - If the exchange rate between the UK and Japan changes from £1 = 100 yen to £1 = 150 yen then ceteris paribus, the price of UK goods in Japan ?
A. will remain the same
B. will decrease
C. will increase
D. could either increase of decrease - 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 - What is more likely to be found in a free market economy than in a planned economy ?
A. an even distribution of income
B. an incentive to innovate
C. a wide range of public goods
D. full employment of labor - The market power effect of an international joint venture can lead to welfare losses for the domestic economy unless offset by cost reductions. Which type of cost reduction would not lead to offsetting welfare gains for the overall economy ?
A. R&D generating welfare improved technology
B. development of more productive machinery
C. new work rules promoting workers efficiency
D. lower wages extracted from workers - Complete currency pass through arises when a 10 percent depreciation in the value of the dollar causes U.S?
A. import prices to fall by 10 percent
B. import prices to rise by 10 percent
C. export prices to rise by 10 percent
D. export prices to fall by 10 percent - Refer to Exhibit 6. Suppose the economy is operating at point (D) As people revise their price expectations ?
A. The short-run Phillips curve will shift in the direction of the short-run Phillips curve associated with an expectation of 3 percent inflation
B. The short-run Phillips curve will shift in the direction of the short-run Phillips curve associated with an expectation of 9 per cent inflation
C. The short-run Phillips curve will shift in the direction of the short-run Phillips curve associated with an expectation of 6 percent inflation
D. The long-run Phillips curve will shift to the left - The hypothesis that people know the true model of the economy and that they use this model to form their expectations of the future is the ?
A. Rational-expectations hypothesis
B. Passive-expectations hypothesis
C. adaptive expectations hypothesis
D. lagged-expectations hypothesis.
