15) When the nominal exchange rate in terms of dollars per yen rises, A) the dollar buys more yen and the dollar has depreciated. B) the dollar buys fewer yen and the dollar has depreciated. C) the dollar buys more yen and the dollar has appreciated. D) the dollar buys fewer yen and the dollar has appreciated.
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- If the exchange rate between the US Dollar ($) and the Euro (E) goes from being $5/E to $6/E, we say that the US Dollar has __________ relative to the Euro. a) depreciated b) stagnated c) appreciated d) arbitragedSuppose that yesterday, the U.S. dollar was trading on the foreign exchange market at 0.75 eurosper U.S. dollar and today the U.S. dollar is trading at 0.80 euros per U.S. dollar. Which of the twocurrencies (the U.S. dollar or the euro) has appreciated and which has depreciated today?b) Suppose that the exchange rate for the Mexican peso fell from 15 pesos per U.S. dollar to 10 pesosper U.S. dollar. What is the effect of this change on the quantity of U.S. dollars that people plan tobuy in the foreign exchange market?c) Suppose that the exchange rate rose from 80 yen per U.S. dollar to 90 yen per U.S. dollar. What isthe effect of this change on the quantity of U.S. dollars that people plan to sell in the foreignexchange market?when the exchange rate for the British pound changes from $1.60 per pound to $1.40 per pound, then, holding everything else constant, the pound has __________, American wheat sold in Britain becomes _________ expensive, and British cars sold in the United States become __________ expensive. depreciated, less, less depreciated, more, less appreciated, more, less appreciated, more, more depreciated, more, more appreciated, less, more depreciated, less, more
- A decrease in Chinese demand for U.S. dollars over the past year has reduced the market equilibrium exchange rate of the dollar from 10 yuan per dollar to 6.5 yuan per dollar. Other things being equal, which of the following is a likely consequence of this kind of change in the exchange rate of the dollar? a. A higher price of exported U.S. products in Chinese for those paying in yuan, which leads to a deficit in the net export. b. A lower price for imported Chinese products in the U.S. for those paying in dollars, which leads to a surplus in the net export. c. A higher price for imported Chinese products in the U.S. for those paying in dollars, which leads to a deficit in the net export. d. Both (a) and (c)Other things the same, if the exchange rate changes from 125 yen per dollar to 135 yen per dollar, the dollar has appreciated and so buys more Japanese goods. depreciated and so buys fewer Japanese goods. depreciated and so buys more Japanese goods. appreciated and so buys fewer Japanese goods.Explain the impact on US export and import if the US dollar has appreciated in comparison with other currencies. For example, the exchange rate for the Mexican peso was 10.97 per dollar in 2003. Now in 2020, it is 20.86 Mexican pesos per dollar under this case the dollar has appreciated almost twice. Also, when the dollar appreciated slightly which is the case of the British pound from 0.62 in 2003 to 0.76 in 2020 per dollar. Also, when there is not either appreciation or depreciation from 2003 to 2020 which is the case of the Saudi Arabia currency its exchange rate remains the same 3.75 Riyals per dollar since 2003 . Then explain the impact of exports and imports under these scenarios.
- 1. The dollar appreciated by 25% relative to the yen and the direct exchange rate is now 1 in the US. Find the old exchange rate prior to the dollar appreciation. 2. Find the rate of appreciation of the yen. 3. Find the rate of change of the direct exchange rate of the yen in the US.The___________exchange rate between the currencies of two countries is the rate at which the currency of one country needs to be converted into that of a second country to ensure that a given amount of the first country's currency will purchase ______________quantity of goods and services in the second country as it does in the first. purchasing power-parity (PPP), the same purchasing power-parity (PPP), a larger market, the same market, a smaller1. The exchange rate for 1 dollar was 1.1 Euros and 1.3 Peso one month ago. Now, the exchange rate for 1 dollar is 1.3 Euros and 1.2 Peso. We can say: A) the dollar has appreciated relative to both Euro and Peso. B) the dollar has depreciated relative to both Euro and Peso. C) the dollar has appreciated relative to Euro and depreciated relative to Peso. D) the dollar has depreciated relative to Euro and appreciated relative to Peso. E) none of the above 2. An appreciation of the dollar would result in: A) foreign travel for U.S. residents to be more expensive. B) an increase in the dollar prices of foreign goods paid by U.S. importers. C) an increase in the foreign demand for U.S. goods. D) a decrease in the foreign currency prices paid for U.S. goods. E) none of the above
- Suppose that the exchange rate falls from 84 yen per U.S. dollar to 71 yen per U.S. dollar. What is the effect of this change on the quantity of U.S. dollars that people plan to sell in the foreign exchange market? The quantity of U.S. dollars that people plan to sell in the foreign exchange market A. decreases and the supply curve of U.S. dollars shifts leftward B. increases and the supply curve of U.S. dollars shifts rightward C. increases and a movement up along the supply curve for U.S. dollars occurs D. decreases and a movement down along the supply curve of U.S. dollars occursSuppose the domestic currency depreciates (E falls). Assume that domestic and foreign price levels remain constant. Which of the following is true? (i) The real exchange rate rises. (ii) The relative price of domestic goods falls. (iii) World demand for domestic goods increases. (iv) The domestic unemployment rate falls in the short run.An appreciation of the exchange value of the U.S. dollar would: A) increase the dollar prices of U.S. imports and the foreign cost of exports from the U.S. B) decrease the dollar prices of U.S. imports and the foreign cost of exports from the U.S. C) increase the dollar prices of U.S. imports, but decrease the foreign cost of exports from the U.S. D) decrease the dollar prices of U.S. imports, but increase the foreign cost of exports from the U.S.