Question 13 Not yet answered Marked out of 1.00 \\ Flag question Which one of the following would result in the dollar depreciating against the Japanese yen? Select one: O a. a rise in the Canadian interest rate O b. a fall in the Canadian interest rate O c. a fall in the Japanese interest rate O d. an increase in the Canadian interest rate differential O e. an increase in the expected future Canadian exchange rate Question 14 Not yet answered Marked out of 1.00 \\ Flag question At the equilibrium exchange rate, Select one: O a. the demand for dollars equals the supply of dollars. O b. a surplus may exist but a shortage may not exist. O c. a shortage may exist but a surplus may not exist. O d. the Canadian dollar is trading for 90 US cents per Canadian dollar. O e. the quantity of dollars demanded equals the quantity of dollars supplied. Question 15 Not yet answered Marked out of 1.00 Flag question The Canadian exchange rate depreciates if Select one: O a. the Canadian interest rate rises. O b. prices increase in the United States and other countries but remain constant in Canada. O c. the US interest rate rises. O d. all of the above O e. none of the aboveQuestion 16 Not yet answered Marked out of 1.00 \\ Flag question If the exchange rate is too high in the foreign exchange market, Select one: O a. there is a shortage and the exchange rate will rise. b. there is a surplus and the exchange rate will fall. O c. there is a surplus and the exchange rate will rise. O d. exports are cheap, and the demand curve for Canadian dollars will shift rightward. O e. there is a shortage and the exchange rate will fall. Question 17 Not yet answered Marked out of 1.00 \\ Flag question The supply curve of dollars shifts rightward if Select one: O a. the price of Canadian goods and services decreases. O b. foreign interest rates rise. c. the Canadian exchange rate rises. d. Canadian interest rates rise. O e. none of the above Question 18 Not yet answered Marked out of 1.00 \\ Flag question Which of the following shifts the supply curve of Canadian dollars rightward? Select one: O a. The dollar is expected to appreciate. O b. The demand for foreign goods by Canadians increases. O c. The demand for Canadian goods by foreigners decreases. O d. US interest rates fall. O e. none of the aboveIf the Bank of Canada sets a target exchange rate that is higher than the current exchange rate, then Select one: a. the Bank must buy dollars. O b. the Bank must sell dollars. O c. will print more dollars for foreign distribution. O d. the Bank can do nothing in the short run. O e. none of the above Question 20 Not yet answered Marked out of 1.00 \\ Flag question If a country's central bank does not intervene in the foreign exchange market, the country has Select one: O a. a fixed exchange rate policy. O b. a flexible exchange rate policy. O c. a responsible exchange rate policy. O d. no exchange rate policy. O e. a crawling peg exchange rate policy. Question 21 Not yet answered Marked out of 1.00 \\ Flag question Suppose that a country's government expenditures are $400 billion, net taxes are $300 billion, saving is $300 billion, and investment is $250 billion. This country has a government budget Select one: O a. surplus and a private sector balance. O b. surplus and a private sector surplus. O c. deficit and a private sector surplus. O d. surplus and a private sector deficit. O e. deficit and a private sector deficit.Question 22 Not yet answered Marked out of 1.00 Flag question Which of the following factors influence(s) the demand for Canadian dollars? Select one: O a. the expected future exchange rate and the world demand for Canadian exports b. interest rates in Canada and other countries, and the expected future exchange rate O c. the world demand for Canadian exports and Canadian demand for imports O d. both A and B e. both B and C Question 23 Not yet answered Marked out of 1.00 \\ Flag question The change in official Canadian reserves is recorded in the account. Select one: O a. consumption expenditure O b. current O c. international investment O d. official settlements O e. capital Question 24 Not yet answered Marked out of 1.00 \\ Flag question The lower the exchange rate, the Select one: O a. smaller is the quantity of Canadian dollars demanded in the foreign exchange market. O b. larger is the quantity of Canadian dollars demanded in the foreign exchange market. O c. smaller is the quantity of Canadian dollars supplied in the foreign exchange market. O d. larger is the quantity of Canadian dollars supplied in the foreign exchange market. O e. both B and CQuestion 25 Not yet answered Marked out of 1.00 \\ Flag question Quantecon is a country in which the quantity theory of money operates. The country has a constant population, capital stock, and technology. In year 1, real GDP was $400 million, the price level was 200, and the velocity of circulation was 20. In year 2, the quantity of money was 20 percent higher than in year 1. The quantity of money in year 1 was The quantity of money in year 2 was The price level in year 2 is . Select one: O a. $40 million / $48 million / 240 O b. $80 million / $88 million / 200 O c. $20 million / $24 million / 220 O d. $40 million / $48 million / 220 O e. $20 million / $24 million / 240 Question 26 Not yet answered Marked out of 1.00 \\ Flag question The opportunity cost of holding money increases when the Select one: a. income of consumers increases. O b. price of goods and services decrease. O c. interest rate rises. O d. purchasing power of money increases. O e. income of consumers decreases. Question 27 Answer saved Marked out of 1.00 \\ Flag question A creditor nation is a country Select one: . a. that has active monetary policy to ensure adequate loans for housing of the poor. O b. that has contributed money for the advancement of health care in less developed countries. O c. that, during its entire history, has invested more in the rest of the world than other countries have invested in it. O d. that does not borrow money from foreign nations. O e. whose official settlements account is rising in value.Question 28 Not yet answered Marked out of 1.00 \\ Flag question Which of the statements about the real exchange rate are correct? 1. The real exchange rate is a measure of how much of one money exchanges for a unit of another money. 2. The real exchange rate is the value of the Canadian dollar expressed in units of foreign currency per Canadian dollar. 3. The real exchange rate is the relative price of Canadian-produced goods and services to foreign-produced goods and services. 4. The real exchange rate is a measure of the quantity of the real GDP of other countries that we get for a unit of Canadian real GDP. Select one a. Statements 1 and 3 are correct. O b. Statements 3 and 4 are correct. O c. Statements 2 and 4 are correct. O d. Statements 2 and 3 are correct. O e. Statements 1 and 2 are correct. Question 29 Answer saved Marked out of 1.00 \\ Flag question Suppose that the banking system of Upperland has excess reserves of $50 million, the desired reserve ratio is 25 percent, and the currency drain ratio is 50 percent. By how much will the quantity of money increase? Select one: a. 100 million O b. $50 million O c. $12.5 million O d. $25 million O e. $37.5 million Question 30 Answer saved Marked out of 1.00 \\ Flag question Foreign currency is Select one: O a. the price at which one currency exchanges for another currency. O b. the purchasing power of foreign money. O c. foreign notes, coins, and bank deposits. O d. the market for foreign exchange. e. foreign notes and coins only