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Unformatted text preview: dollar-peso market: a. The demand curve for dollars shifts left b. The supply curve of dollars shifts left c. The demand curve for pesos shifts right d. A movement down the supply curve of dollars 9. An increase in real GDP and real income in the U.S. will lead to the following in the foreign exchange market: a. A decrease in the demand for dollars b. A decrease in the supply of dollars c. A depreciation of the dollar relative to foreign currency d. An increase in the demand for dollars 10. An increase in the real interest rate on U.S. bonds, everything else equal, will have the following impact on the foreign exchange market: a. The demand for dollars will increase b. The supply of dollars will increase c. The dollar will depreciate relative to foreign currencies d. There will be a movement up the existing demand for dollars curve 11. If a dollar will currently purchase 120 Japanese yen but it is expected that one year from now a dollar will purchase 130 yen: a. The demand for dollars now will increase b. The demand for dollars now will decrease c. The dollar is expected to depreciate d. The yen is expected to appreciate...
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- Spring '13
- Foreign exchange market, United States dollar, dollar, nominal exchange rate