How does a depreciation of the dollar against the yen affect the net exports of the US?
2. Question 2 How does a depreciation of the dollar against the yen affect the net exports of the US? 1 point Net exports of the US to Japan…
Suppose Botswana decides to peg its currency, pula, to the US dollar at the of rate 0.1$/pula and allows capital to free flow in and out of the country so that the interest parity condition holds. If everyone views the peg as credible and comes to expect the exchange rate to remain constant in the coming years, then the one-year, risk-free interest rate in Botswana will
9. Question 9 Suppose Botswana decides to peg its currency, pula, to the US dollar at the of rate 0.1$/pula and allows capital to free flow in and out of…
Suppose (1+i)ef < (1+i*)e where ef and e represent forward (a year from now) and spot exchange rates and i and i* represent the interest rates on domestic currency and the interest rate on foreign currency, respectively.
10. Question 10 Suppose (1+i)ef < (1+i*)e where ef and e represent forward (a year from now) and spot exchange rates and i and i* represent the interest rates on…
Assuming that the covered and uncovered interest parities both hold at a given time and that ef and ee represent forward and expected exchange rates, we will have ___________.
7. Question 7 Assuming that the covered and uncovered interest parities both hold at a given time and that ef and ee represent forward and expected exchange rates, we will…
The price of one Indian rupee (INR) in terms of Australian dollar (AUD) is 0.02. If the price of a basket of goods is INR 50,000 in India and AUD 2000 in Australia, then the real exchange rate of the rupee vis-à-vis the Australian dollar (treating the rupee as home currency) is __________.
1. Question 1 The price of one Indian rupee (INR) in terms of Australian dollar (AUD) is 0.02. If the price of a basket of goods is INR 50,000 in…
Which of the following is a correct representation of the relationship between Trade Surplus (NX) and other macroeconomic variables [GDP (Y), Private Consumption (C), Government Consumption (G), Investment (I), Domestic Savings (S), Private Savings (Sp), and Government Savings (Sg)]?
8. Question 8 Which of the following is a correct representation of the relationship between Trade Surplus (NX) and other macroeconomic variables [GDP (Y), Private Consumption (C), Government Consumption (G),…
Which of the following could have contributed to high trade deficit in the United States?
9. Question 9 Which of the following could have contributed to high trade deficit in the United States? 1 point Decline in private sector investment Increase in government…
In the United States, government expenditure on goods and services as a share of GDP declined between the mid-1960s and late-1990s while the budget deficit was growing.
3. Question 3 In the United States, government expenditure on goods and services as a share of GDP declined between the mid-1960s and late-1990s while the budget deficit was growing….
In macroeconomic analysis, why does one have to distinguish between consumption and investment expenditures?
1. Question 1 In macroeconomic analysis, why does one have to distinguish between consumption and investment expenditures? 1 point Consumption and investment expenditures are determined by different factors. …
During recessions, it is natural for an economy to consume less and invest more.
5. Question 5 During recessions, it is natural for an economy to consume less and invest more. 1 point True False
