Hello! May I please get some help with these answering questions. Thank you!
A. Hard exchange rate peg Can use hedging to minimize the risk of the currency depreciating relative to the U.S. dollar and hurting the company's revenues. A U.S. car manufacturer with Canadian dollar receivables C. Example of Foreign Direct Investment The Federal Reserve Bank of New York conducts a successful Open Market Sale of D. Benefits if the U.S. dollar appreciates relative to Canadian dollar $100,000 worth of government securities E. Examples of the dollarization of China's currency: the renminbi yuan. Specialization and Trade F. The simple money (deposit) multiplier rises from 6.679% to 8.33% Since October 23, 1995, the country of Jordan has fixed its currency, the dinar, at 1 dinar G. The money supply declines by at least $100,000 = 1.41044 dollars (1 U.S. dollar = 0.709 dinar). H. Investors are insensitive to changes in interest rate Increase in the money supply didn't decrease the interest rate rendering monetary policy ineffective Budget Deficit The Federal Reserve lowered the required reserve ratio from 15% to 12% J. Floating exchange rate The total amount the Federal government owes its creditors K. Allow countries to consume at a level beyond their Production Possibilities Frontier "U.S. Inflation Rate Hit 6-Year High in May" reads a headline for The Wall Street Journal L. Require a country to be more efficient than others (Absolute advantage is necessary) article M. Crowding-out effect The Federal Reserve prints $10,000 and gives it to Mrs. Cash. The required reserve ratio is N. Generates a maximum of $9, 000 deposit in the banking system 109% "General Motors and Volkswagen have invested billions in China, starting more than a decade O. Will likely lead to the deprectiation of the U.S. dollar due to a decrease in demand and an increase in supply ago. Ford is rushing to catch up by adding production capacity and expanding its dealer network in China. Ford and its joint-venture partner, Chang'an Ford Mazda Automobile, plan P. Leads to the appreciation of U.S. dollar encouraging portfolio investors to hold more of it to start producing next-generation Ford Focus models at a new, $490 million plant in Chongqingin 2012." --Forbes Q. Hurt a country if it is a net importer R. The money supply increases by a maximum of $100,000 and a minimum of $10,000 5. National (public) debt T. Liquidity trap