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Can someone please review my questions and let me know what answers are correct and explain which are wrong. And assist me in the ones
Can someone please review my questions and let me know what answers are correct and explain which are wrong. And assist me in the ones that I have not selected.
1. In which of the following events will the Australian dollar most likely appreciate against the U.3. dollar? A} interest rates rise in the U.3. B} interest rates rise in Australia C} the price level rises in Australia by more than the U.3. price level goes up D} expectations that the Australian dollar will fall in value 2. Which of the following parties benefits from a depreciation of the U.3. dollar? A} British exchange students studying in the U.3. B} U.3. exchange students studying in Britain C} Canadian firms selling in the [1.3. D} [1.3. purchasers of British goods 3. Cine euro was worth 1.14 U.3. dollars in February and 1.06 U.3. dollars in April. 1Which of the following staMents is correct? A} the dollar appreciated against the euro B} the euro became stronger against the dollar C} the dollar depreciated against the euro [1} none of the above 4. In the foreign exchange market, an increase in interest rates available in the European Union. all other things equal, will shift the and the euro will A} demand curve for the euro to the right; appreciate B} supply curve for the euro to the right; depreciate C} demand curve for the euro to the left; depreciate I1} both E and C are correct. 5. An easy money policy by the Fed will A} increase the money supply but have no effect on aggiegate demand B} increase the money supply and decrease the interest rate C} increase both the money supply and the interest rate [1} increase the money supply and decrease aggregate demand 6. What kind of A} buying bonds B} lowering the discount rate C} selling bonds [1} none of the above 7. Consider the Japanese yen-Russian ruble foreign exchange market. If Japanese demand for Russian oil decreases substantially, then, other things equal, which of the following is most likely to occur? A) The supply of yen will decrease. B) The ruble will depreciate relative to the yen. C) The demand for rubles will decrease. D) All of the above are likely to occur. 8. What is meant by purchasing power parity (PPP)? A) When a currency is worth more in terms of other currencies. B) When a country lets the value of its currency be determined in the exchange rate market. C) An exchange rate policy where the government usually allows the exchange rate to be set by the market, but in some cases, especially if the exchange rate seems to be moving rapidly in one direction, the central bank will intervene. D) The exchange rate that equalizes the prices of internationally traded goods across countries. 9. An appreciation of the U.S. dollar is good for U.S. firms. A) True B) False 10. An appreciation of the U.S. dollar is good for U.S. consumers. True B) False 11. Expansionary fiscal policy pushes the aggregate demand curve to the left. A) True B) False 12. A depreciated dollar decreases the relative price of U.S. goods, thereby promoting foreign demand for U.S. goods. A) True B) FalseStep by Step Solution
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