11.

(06.04 MC) Which of the following will increase the demand for the currency of country A in the foreign exchange market? (3 points)

	Increase in the price level in country A
	Decrease in expectations regarding appreciation of currency of country A
	Increase in the foreign demand for goods of country A
	Decrease in the foreign demand for goods of country A
	Increase in the aggregate demand in country A

12.

(06.04 MC) Assume the United States government significantly increases deficit spending relative to other countries. Which of the following would happen to the U.S. dollar in the foreign exchange markets because of the change in the interest rate, ceteris paribus? (3 points)

	The U.S. dollar will appreciate.
	The U.S. dollar will depreciate.
	There will be a decrease in demand for the U.S. dollar on foreign exchange markets.
	There will be a decrease in the supply of U.S. dollars on foreign exchange markets.
	The U.S. dollar will be devalued.

13.

(06.05 MC) How will the depreciation of the U.S. dollar impact the output of the United States, ceteris paribus? (3 points)

	Depreciation of a dollar will allow cheaper imports, decreasing output.
	Depreciation of a dollar will increase the net exports, increasing output.
	Depreciation of a dollar will decrease the value of a dollar, decreasing output.
	Depreciation of a dollar will boost exports of foreign countries, decreasing output.
	Depreciation of a dollar will also make other currencies cheaper, decreasing output.

14.

(06.05 MC) Assume that country A and B are trading partners. If A's currency appreciates in comparison to B's currency. Which of the following will be true in this scenario? (3 points)

	Net exports of country A will decrease, and net exports of country B will increase.
	Net exports of country A will decrease, and net exports of country B will also decrease.
	Net exports of country A will remain unaffected, and net exports of country B will increase.
	Net exports of country A will increase, and net exports of country B will remain unaffected.
	Net exports of country A will increase, and net exports of country B will also increase.

15.