0.5 points Save Answer QUESTION 5 As of November 24, 2017, the price of an euro is equal to $1.18. How much is the price of dollar in terms of euro? 0.65 euro 0.75 euro 0.85 euro O 1 euro 0.5 points Save Answer QUESTION 6 Suppose, the price of an euro changes to $1.25. How much is the new price of dollar in terms of euro? O 0.7 euro O 0.8 euro O 0.9 euro 1 euro 0.5 points Save Answer QUESTION 7 Changes in the price of euro from $1.18 to $1.25 represents a currency appreciation or depreciation. If EO is the old price of euro and E1 is the new price, by how much euro has appreciated or depreciated? [Please review the exchange rate slides before attempting.] 4.59% 5.93% 6.53% 7.50%QUESTION 1 0.5 points Save Answer The exchange rate is the: price of one currency expressed in terms of another currency. O reciprocal of the currency's real value. price of one currency expressed in terms of the goods and services it can buy. QUESTION 2 0.5 points Save Answer When the value of a currency decreases relative to other currencies, we say that a currency experiences: O interest-rate depreciation. exchange-rate appreciation. exchange-rate depreciation. interest-rate appreciation. QUESTION 3 0.5 points Save Answer If the dollar appreciates in the foreign exchange market: O U.S. exports will decrease. It is impossible to say how net exports will be affected without knowing how net capital outflow is affected. O U.S. net exports will increase. O U.S. net exports will be unaffected. QUESTION 4 0.5 points Save Answer When the U.S. dollar appreciates against a foreign currency, U.S. goods become: more expensive to people abroad, and we expect net exports to increase more expensive to people abroad, and we expect net exports to decrease. less expensive to people abroad, and we expect net exports to increase. less expensive to people abroad, and we expect net exports to decrease.QUESTION 8 0.5 points Save Answer If the cost of a typical basket of goods in the U.S. is $100 and in France it is 400 euros, and the nominal exchange rate is 2 euro per dollar, what is the real exchange rate? O 2.0. O 0.5. O 1.5. O 1.0. QUESTION 9 0.5 points Save Answer Based on your answer to the previous question, which one of the answer is correct about real exchange rate from previous question? O Real exchange rate =2 implies purchasing power of $1 is twice as much as in the other country. Real exchange rate =0.5 implies purchasing power of $1 is 0.5 as much as in the other country. O Real exchange rate =1 implies purchasing power of $1 is the same in both countries Real exchange rate =1.5 implies purchasing power of $1 is 1.5 as much as in the other country. QUESTION 10 0.5 points Save Answer Suppose, you are planing to travel to U.K. and willing to spend $1000 for personal expenses (hotel, food, transportation) for a five day stay. Today exchange rate (E) is equal to: $1=10.699 or $1= $1.43. Based on the conversion formula explained in the slide and exchange rate, which expression(s) shows the amount of British pound (f) you could buy for $1000? [Select all that apply] $1000x E 0.699 $1000/ E 0.699 $1000/$1.43 $1000x$1.43