Under a floating exchange-rate system, everything remaining constant, an increase in European exports to Japan is most likely to result in
A. a decrease in the supply of euro in the foreign exchange market.
B. an appreciation of the euro vis-à-vis the Japanese yen.
C. an appreciation of the Japanese yen vis-à-vis the euro.
D. a decrease in the demand for euro in the foreign exchange market.
Answer: B
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Refer to Figure 28-9. A(n) ________ would be depicted as a movement from A to D to C
A) supply shock, such as rising oil prices, B) implementation of contractionary monetary policy C) increase in short-run aggregate supply D) increase in aggregate demand
Refer to the above table. What is the absolute price elasticity of demand when price changes from $6.00 to $6.50?
A) 1.60 B) 1.00 C) 0.65 D) 0.60
If the money rate of interest is 9 percent and the real rate of interest 6 percent, the inflationary premium is
a. 3 percent. b. 6 percent. c. 9 percent. d. 12 percent.
A municipal bond is
a. issued by the federal government. b. issued by state and local governments. c. issued by corporations. d. issued by households.