Unformatted text preview: D. foreign currency is more expensive to Americans. 5. If a country’s citizens purchase buildings in foreign countries, it will lead to a _____ of the country’s _____ account. A .surplus, current. B. deficit, current. C. surplus, capital. D. deficit, capital. 6. If E increases, P increases, and P* decreases, it will result in A. real appreciation. B. real depreciation. C. nominal depreciation. D. no change in real exchange rate. 7. As a result of questions 6, A. American goods are more expensive to foreigners. B. foreign goods are more expensive to Americans. C. the dollar is more expensive to foreigners. D. foreign currency is less expensive to Americans. 8. If the U.S. bond pays a higher one-year interest rate than the U.K. bond does, why would you buy the U.K. bond? Explain your argument....
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This note was uploaded on 09/18/2008 for the course ECON 100B taught by Professor Rauch during the Winter '07 term at UCSD.
- Winter '07