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You are given the following information Quantity of imports Quantity of exports 100 15 15 1.50 Foreign currency price of imports Dormestic currency price of

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You are given the following information Quantity of imports Quantity of exports 100 15 15 1.50 Foreign currency price of imports Dormestic currency price of esports Exchango rale The foreign currency and domestic currency values of imports are respectively eqeal to A: 1500 and 2250. B: 1440 and 1050. C: 2250 and 1500. D 1500 and 1000. E. 1000 and 1500. 2. The domestic currency and foreign currency values of exports are respectively equal to 1500 and 2250 1440 and 1050. C: 1500 and 1000. D 1000 and 1500. 1500 and 1500 If the exchange rate is 150 and the elasticity of export demand and import demand are -0.4 and 0.20 respectively, then the balance of payment will be in value will be equal to and its foreign currency A: deficit; 500.00 B: deficit;-553.60 C surplus; +34.00 D: deficit;, -34.00. E: balance; 00.00 4. If the exchange rate increases from 1.5 to 1.80 and the elasticity of export demand and import demand are-1.8 and-1.5 respectively, then the balance of payment will be in and its foreign currency value will be equal to A: deficit,-553.60 B: surplus; +500.00 C: surplus; +34.00 D: deficit; -34.00. E: balance; 00.00 The demand for foreign exchange falls as the exchange rate (S) rises because: A the domestic currency price of imports rises. B: the demand for imports falls. C the demand for exports falls D: E. A change in the exchange rate (S) affects: A: the domestic currency price of exports. B: the domestic currency price of imports. C the foreign currency price of exports. D: all of the above. E. Band C 5: both (A) and (B). both (A) and (C). 6: The J-curve effect describes: A: B: 7: the inverse relationship between the current account and the growth rate. the tendency for the current account to deteriorate immediately after the depreciation of the domestic currency C the tendency for exporters to reduce the foreign price of exports following the D: the depreciation of the domestic currency immediately after a fall in the domestic appreciation of the domestic currency inflation rate E) all of the above v

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