If the exchange rate (dollars per unit of foreign currency) has decreased because of a shift of the supply curve, the demand curve, or both, we say there has been a(n)
a. appreciation of the foreign currency
b. depreciation of the foreign currency
c. revaluation of the foreign currency
d. devaluation of the foreign currency
e. fixing of the foreign currency
B
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The rule-of-thumb for checking for weak instruments is as follows: for the case of a single endogenous regressor,
A) a first stage F must be statistically significant to indicate a strong instrument. B) a first stage F > 1.96 indicates that the instruments are weak. C) the t-statistic on each of the instruments must exceed at least 1.64. D) a first stage F < 10 indicates that the instruments are weak.
At a fair carnival roulette wheel, a player can either win $10, $30, or $80 . If it costs $50 to play, would an individual gain or lose from playing the game
a. Gain b. Lose c. Breakeven-neither gain nor lose d. None of the above
A U.S. federal budget deficit that raises real interest rates is most likely to:
a. lead to a depreciation of the dollar in the foreign exchange market. b. encourage foreign investment in U.S. securities. c. lead to an increase in exports. d. lead to an appreciation of other currencies relative to the U.S. dollar. e. discourage imports of foreign goods.
Suppose Good Z is a normal good. Which of the following will increase the demand for Good Z?
A. an increase in the price of its complements B. an increase in the price of its substitutes C. a decrease in income D. a lower expected future relative price of Good Z