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Economics
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12 Dec 2019

If the exchange rate? rises, then the quantity of dollars demanded? ________ because with the higher U.S. exchange? rate, U.S. exports? ________.

A. ?increases; decrease

B. does not? change; do not change

C. ?increases; increase

D. ?decreases; decrease

E. ?decreases; increase

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Related questions

23) Which of the following factors move the demand curve for Canadian dollars and the supply curve of Canadian dollars in opposite directions? A) The interest rate differential increases or decreases. B) Canadian imports increase or decrease. C) The world demand for Canadian exports increases or decreases. D) The expected future exchange rate rises or falls. E) Both A and D above

5. If a clothing manufacturer purchased a computerized sewing machine from an American company, then

a. consumer spending and GDP both increase.

b. investment and GDP both increase.

c. consumer spending increases and GDP decreases.

d. investment increases and GDP decreases.

e. consumer spending and investment both increase.

6. When the production possibilities curve increases, a corresponding

a. increase would take place with aggregate demand.

b. decrease would take place with aggregate demand.

c. decrease would take place with short-run aggregate supply.

d. decrease would take place with long-run aggregate supply.

e. increase would take place with long-run aggregate supply.

7. Given a normal market demand curve for Guess watches, if the price of Guess watches decreases from $35 to $32.50, then there is a(n)

a. increase in the demand for Guess watches.

b. increase in the quantity demanded of Guess watches.

c. decrease in the demand for Guess watches.

d. decrease in the quantity demanded of Guess watches.

e. decrease in the supply of Guess watches.

8. If the U.S. dollar price of the Danish krone increases, then

a. the U.S. dollar has appreciated.

b. the Danish krone has depreciated.

c. the Danish krone has appreciated.

d. both the Danish krone and the U.S. dollar have appreciated.

e. both the Danish krone and the U.S. dollar have depreciated.

9. Suppose interest rates rise in the United States, but they don't rise in other nations. As a result of this change, which of the following is true?

I. The demand for the U.S. dollar will increase

II. The demand for the U.S. dollar will decrease

III. U.S. exports will decrease as a result of the changing value of the U.S. dollar.

IV. U.S. exports will increase as a result of the changing value of the U.S. dollar.

a. I only.

b. I and IV only.

c. I and III only.

d. II and IV only.

e. II and III only.

10. The U.S. dollar is currently trading for 1.31 Bulgarian levs (BGN) per dollar. If the exchange rate adjusts to 1.5 Bulgarian levs per 1 U.S. dollar, then

a. the BGN has appreciated.

b. the U.S. dollar has appreciated.

c. the U.S. dollar has depreciated.

d. both the BGN and the U.S. dollar have appreciated.

e. both the BGN and the U.S. dollar have depreciated.

"An increase in supply decreases the equilibrium price. The decrease in price increases demand". The statement is:

A. false: increases in the supply decrease price.

B. false: increases in supply increase price. Decreases in price increase demand.

C. true: increases in the supply decrease price. Decreases in price increase demand.

D. false: decreases in price affect the quantity demanded, not demand.

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