All of the following are considered among the four

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ECONOMICS 1120222

121 )   All of the following are considered among the four most important determinants in explaining exchange rate fluctuations in the long run except
A ) preferences for domestic and foreign goods .
B ) interest rates .
C ) relative rates of productivity growth across countries .
D ) tariffs and quotas .
122 )   If the average productivity of Indian firms is rising more quickly than the average productivity of American firms , which of the following would you expect to see ? ( India ʹ s currency is the rupee . )
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123 )   How will the exchange rate ( foreign currency per dollar ) respond to a decrease in the relative rate of productivity growth in the United States in the long run ?
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124 )   How will the exchange rate ( foreign currency per dollar ) respond to an increase in preference for imported goods in the United States in the long run ?
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Managerial Economics
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Chapter 11 / Exercise 9
Managerial Economics
Froeb/McCann
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121) All of the following are considered among the four most important determinants in explainingexchange rate fluctuations in the long runexceptA) preferences for domestic and foreign goods.B) interest rates.C) relative rates of productivity growth across countries.D) tariffs and quotas.Answer: B
121)
Page Ref: 1051/669Learning Outcome: Macro-15: Describe how government policies and exchange rates affect open economymacroeconomics.122) If the average productivity of Indian firms is rising more quickly than the average productivity ofAmerican firms, which of the following would you expect to see? (Indiaʹs currency is the rupee.)
Page Ref: 1051/669Learning Outcome: Macro-15: Describe how government policies and exchange rates affect open economymacroeconomics.123) How will the exchange rate (foreign currency per dollar) respond to a decrease in the relative rateof productivity growth in the United States in the long run?
Page Ref: 1051/669Learning Outcome: Macro-15: Describe how government policies and exchange rates affect open economymacroeconomics.124) How will the exchange rate (foreign currency per dollar) respond to an increase in preference forimported goods in the United States in the long run?
124)
Page Ref: 1051/669Learning Outcome: Macro-15: Describe how government policies and exchange rates affect open economymacroeconomics.31
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Managerial Economics
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Chapter 11 / Exercise 9
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