RHW13ANS

RHW13ANS - Rhw13 2 16 28 30 33 34 37 41 42 44 45 47 50 51...

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Rhw13 2 16 28- 30 33 34 37 41 42 44 45 47 50- 51 52 53 55 Question2 - Single Correct 1.0 Point If the U.S.dollar depreciates against other currencies, A foreign products are now more expensive to U.S. citizens. B foreign products are now cheaper to U.S. citizens. C U.S. products are now more expensive to U.S. citizens. D U.S. products are now cheaper to foreign countries. DEFINITION. IF $1 EXCHANGES FOR 5 PUNDS (MAKE BELIEVE CURRENCY) -PUND IS WORTH 1/5 OF A $. SO PACK OF U.S. GUN THAT COSTS$1 COSTS PUNDIAN 5 PUNDS. IF $ DEPRECIATES SO THAT $1 GETS 4 PUNDS, A PUNDIAN CAN BUY $1 FOR ONLY 4 PUNDS AND THUS GUM COSTS THEM ONLY 4 PUNDS. Question16 - Single Correct 1.0 Point A recession in the United States will A increase imports and decrease exports of the United States. B decrease imports and decrease exports of the United States. C decrease imports of the United States but not affect exports of the United States. D decrease exports of the United States but not affect imports of the United States. DEMAND FOR IMPORTS DEPENDS PARTIALLY ON INCOME IN U.S. 9AS DOES DEMAND FOR DOMESTICALLY PRODUCED GOODS) HENCE RECESSION LOWERS INCOME AND IMPORTS. EXPORTS FROM U.S. DEPEND ON FOREIGN INCOME, WHICH IS NOT NECC. IMPACTED BY U.S. RECESSION Question28 - Single Correct 1.0 Point Suppose Boulinas' exports equal $50 billion, its purchases of foreign assets equal $100 billion, and foreign purchase of Boulinas' assets equal $200 billion. What is Boulinas' balance on its current account? A $100 billion B -$100 billion C $150 billion D -$150 billion BALANCE OF PAYMENTS = CURRENT ACCOUNT + CAPITAL/FINANCIAL ACCOUNT = 0 CURRENT ACCOUNT = EXPORTS-IMPORTS CAPITAL ACCOUNT IS NET PURCHASE OF U.S. ASSETS CAPITAL ACCOUNT = -100+200=+100 CURRENT ACCOUNT MUST EQUAL -100 = 50-IMPORTS HENCE IMPORTS=150 SO 50-150=-100 + 200-100=+200 = 0
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Question30 - Single Correct 1.0 Point Which of the following statements is true of a country that has a gold standard exchange rate system? A A country running a deficit in its balance of payment would experience an outflow of gold which would force it to increase the price of gold. B
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RHW13ANS - Rhw13 2 16 28 30 33 34 37 41 42 44 45 47 50 51...

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