Assume that there are only two countries in the world, the United States and Japan. What creates the demand for and supply of Japanese yen on the foreign exchange market? Name three different things that could cause the yen to appreciate in value
The demand for Japanese yen would come from people in the United States that want to buy Japanese goods, services and financial assets. The supply of yen would come from people in Japan that want to buy American goods, services and financial assets. The yen would appreciate in value if: 1 ) income growth rates were higher in the U.S. than in Japan; 2 ) inflation was relatively higher in the U.S. than in Japan; 3 ) real interest rates were relatively higher in Japan than in the United States.
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Last year your job at the university cafeteria paid you $9 an hour and the price of a music download was $1.00. This year your cafeteria job pays $9.90 per hour and download costs $1.10. You are clearly
A. worse off because of inflation. B. worse off because the download is now relatively more expensive. C. better off because your wage rate went up. D. better off because the download now costs less work.
The cost of hiring one more worker, ceteris paribus, is known as
A) marginal revenue product. B) marginal physical product. C) marginal factor cost. D) marginal wage.
One protection that encouraged entrepreneurs in the U.S. was the enforceability of contracts by the courts
a. True b. False Indicate whether the statement is true or false
In the United States in 2015, consumption represented slightly less than
a. 60 percent of GDP. b. 70 percent of GDP. c. 80 percent of GDP. d. 90 percent of GDP.