would you answers all the question please This question its just Multiple Choice . thank you

The following is an example of Radio Shack hedging its foreign currency risk:

(a) needing to pay 9,000 yen per radio to its suppliers in a month, Radio Shack makes a forward-exchange deal to sell yen.

(b) needing to pay 9,000 yen per radio to its suppliers in a month, Radio Shack buys yen at a spot-exchange 1 month from now. (c) needing to pay 9,000 yen per radio to its suppliers in a month, Radio Shack makes a forward-exchange deal to buy yen.

(d) needing to pay 9,000 yen per radio to its suppliers in a month, Radio Shack sells yen at a spot-exchange 1 month from now. (e) None of the above.

2. Assume that the United States faces an 3 percent ination rate while the ination in Japan equals -3 percent. According to the purchasing-power parity theory, the dollar would be expected to:

(a) Appreciate by 4 percent against the yen

(b) Depreciate by 4 percent against the yen

(c) Appreciate by 6 percent against the yen

(d) Depreciate by 6 percent against the yen

(e) Remain at its existing exchange rate

3. After a permanent increase in the domestic real money supply,

(a) the exchange rate overshoots only in the short run.

(b) the exchange rate overshoots only in the long run.

(c) the exchange rate overshoots in the long run and in the short run.

(d) the exchange rate is not aected because real money supply has not increased.

4. A change in the euro-dollar exchange rate from 0: 780 e /dollar to e 0: 745 e /dollar implies that the dollar has

(a) depreciated by 4.5% against the euro.

(b) appreciated by 4.5% against the euro.

(c) appreciated by 4.7% against the euro.

(d) depreciated by 4.7% against the euro.

5. An increase in

(a) nominal output raises the interest rate while a fall in real output lowers the interest rate, given the price level and the money supply.

(b) real output decreases the interest rate while a fall in real output increases the interest rate, given the price level.

(c) real output raises the interest rate while a fall in real output lowers the interest rate, given the money supply.

(d) real output raises the interest rate while a fall in real output lowers the interest rate, given the price level and the money supply

(e) nominal output raises the interest rate while a fall in real output lowers the interest rate, given the price level.

6. Suppose the dollar interest rate is 15% per year and the euro interest rate 3% per year. For uncovered interest parity to hold, the expected rate of dollar depreciation over a year must be

(a) 12%.

(b) 7%.

(c) 1%.

(d) Impossible to tell given the information provided.

7. An increase in the world relative demand for Canadian output causes

(a) only a short-run real depreciation of the Canadian dollar against the euro.

(b) a long-run real depreciation of the Canadian dollar against the euro.

(c) a long-run real appreciation of the Canadian dollar against the euro.

(d) A and B only.

(e) None of the above.

8. Given PUS and YUS,

(a) An increase in the European money supply causes the euro to appreciate against the dollar, but it does not disturb the U.S. money market equilibrium.

(b) An increase in the European money supply causes the euro to appreciate against the dollar, and it creates excess demand for dollars in the U.S. money market.

(c) An increase in the European money supply causes the euro to depreciate against the dollar, and it creates excess demand for dollars in the U.S. money market.

(d) An increase in the European money supply causes the euro to depreciate against the dollar, but it does not disturb the U.S. money market equilibrium.

(e) None of the above.

9. The Marshall-Lerner Condition states that, all else equal,

(a) real depreciation improves the current account if export and import volumes are suciently inelastic with respect to the real exchange rate.

(b) real appreciation improves the current account if export volumes are suciently inelastic with respect to the real exchange rate.

(c) real depreciation improves the current account if import volumes are suciently inelastic with respect to the real exchange rate.

(d) real depreciation improves the current account if export and import volumes are suciently elastic with respect to the real exchange rate.

(e) nominal appreciation improves the current account if export and import volumes are suciently elastic with respect to the real exchange rate.

(f) the sum of import and export elasticities must be equal to one in order for depreciation to occur.

High interest rates in the Canada tend to:

(a) Decrease the demand for CAD, causing the CAD to depreciate

(b) Decrease the demand for CAD, causing the CAD to appreciate

(c) Increase the demand for CAD, causing the CAD to depreciate

(d) Increase the demand for CAD, causing the CAD to appreciate