Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. If net capital flows were -28 billion and domestic investment was 17 billion, then the amount of domestic savings was A) -11 billion. B)

1. If net capital flows were -28 billion and domestic investment was 17 billion, then the amount of domestic savings was

A) -11 billion. B) 45 billion. C) 11 billion. D) -9 billion.

2. The United States is currently a net debtor nation. This means that

A) U.S. consumers have a great variety of foreign goods available to them.

B) the U.S. economy is in serious trouble if government policies don't change quickly.

C) capital outflows from the U.S. are greater than inflows.

D) the U.S. is seen as a poor investment by foreign citizens and firms.

3. Which of the following exchange rates account for changes in price levels between two nations?

A) bilateral exchange rates 4 B) nominal exchange rates C) real exchange rates D) forward exchange rates

4.If last year's inflation rate in South Korea was 5.4% and last year's inflation rate in the U.S. was 3.2%, we would expect the change in the Dollar/Won rate to have

A) decreased by 2.2%. B) increased by 2.2%. C) decreased by 1.6875%. D) increased by 4.7%

5. If it used to take $2 to buy a Swiss franc and now it takes $1.50 to buy a Swiss franc, then

A) the dollar must have appreciated.

B) the franc must have appreciated.

C) the fed must have intervened in the exchange markets.

D) the value of Swiss francs must have increased.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Futures And Options Markets

Authors: Jonn C. Hull

8th International Edition

0133382850, 9780133382853

More Books

Students also viewed these Finance questions

Question

What has been happening to fees on openend funds? Why?

Answered: 1 week ago

Question

1. Let a, b R, a Answered: 1 week ago

Answered: 1 week ago

Question

Describe organized labors strategies for a stronger movement.

Answered: 1 week ago

Question

Explain the nature and role of safety, health, and wellness.

Answered: 1 week ago

Question

Identify the steps that lead to forming a bargaining unit.

Answered: 1 week ago