An appreciation of the dollar against all currencies in the foreign exchange market would result in all of the following, except:
a. a decrease in the dollar prices paid by U.S. importers.
b. an increase in the cost of vacations in Florida for Japanese tourists.
c. foreign holidays for U.S. residents to be less expensive.
d. an increase in the foreign currency prices paid for U.S. exports.
e. an increase in the demand for U.S. exports.
e
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An increase in the income tax rate ________ the value of the tax multiplier
A) decreases B) increases C) has no effect on D) may increase or decrease
Real interest rates are the
A) interest rates quoted in the market. B) interest rates quoted in the market plus the expected inflation rate. C) nominal interest rates plus the inflation rate. D) interest rates quoted in the market minus the inflation rate.
What did automobiles and government subsidized highways increase the net benefits of?
(a) Investing privately in highway development (b) Rapid expansion of new cities and towns and revitalization in old cities and towns (c) Development of suburban and exurban areas (d) All of the above
If for some reason Americans desired to decrease their purchases of foreign assets, then other things the same
a. both the real exchange rate and the quantity of dollars exchanged in the market for foreign-currency exchange would fall. b. both the real exchange rate and the quantity of dollars exchanged in the market for foreign-currency would rise. c. the real exchange rate would rise and the quantity of dollars exchanged in the market for foreign-currency would fall. d. the real exchange rate would fall and the quantity of dollars exchanged in the market for foreign-currency would rise.