The foreign exchange market is the market where a

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166.The foreign exchange market is the market wherea.goods and services of different countries are exchanged.b.currencies of different countries are exchanged.c.transportation services for foreign goods are contracted.d.either a or ce.none of the aboveANS: BDIF:Moderate
167.If the income of U.S. citizens falls relative to the income of Japanese citizens, the dollar will__________ in terms of the yen, and the yen will __________ in terms of the dollar.
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DIF:Moderate
168.If inflation in the United States is higher than it is in Mexico, the dollar will __________ in terms ofthe peso and the peso will __________ in terms of the dollar.DIF:Moderate
169.If real interest rates are significantly lower in Japan than in the United States, the yen will likely__________ in terms of the dollar and the dollar will likely __________ in terms of the yen.DIF:Moderate
170.If the U.S. dollar appreciates in the foreign exchange market, U.S. exports will be __________ andU.S. imports will be __________.a.relatively less expensive; relatively less expensiveb.relatively less expensive; relatively more expensivec.relatively more expensive; relatively less expensived.relatively more expensive; relatively more expensivee.unaffected; relatively less expensiveANS: CDIF:Moderate
171.If the U.S. dollar depreciates in the foreign exchange market, U.S. exports will be __________ andU.S. imports will be __________.DIF:Moderate
172.The market in which the currencies of different countries are exchanged is called theDIF:Easy
173.Under the gold standard, exchange rates were determined by
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e.none of the aboveANS: ADIF:Moderate

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Term
Spring
Professor
Dungan
Tags
International Trade, United States dollar

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