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Ch 5 Global Trade [AP & Reg]


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Unformatted text preview: n Increase appreciating the Canadian d. Outflow Depreciation Increase dollar, and decreasing its e. Outflow Appreciation Decrease exports because they are now more expensive. (51%) 3. With an increase in investment demand in the U.S. the real interest rate (51%) increase real rises. In this situation, the most likely change in the capital stock in the U.S. rises change and in the international value of the dollar would be which of the following? international Capital Stock in International Value Capital United States of the Dollar United More real investment would result in an a. Increase Decrease increase in real capital stock in the U.S. b. Increase No change The increase in the real interest rate would c. Increase Increase increase financial investment demand d. Decrease Increase for the dollar as it appreciates. e. No change Decrease (64%) 4. Which of the following would cause the U.S. dollar to increase in value compared to the Japanese yen? increase a. An increase in the money supply in the...
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