A primary reason that explains the appreciation in the value of U.S dollar would be ?

Related Mcqs:

Suppose that the purchasing power parity estimate of the dollar/euro exchange rate is $1.30 per euro, and the current spot rate is $1.3 8 per euro. Comparing these two exchange rates from a long-run viewpoint you would ?

A. anticipate the dollar to depreciate against the euro B. anticipate the dollar to appreciate against the euro C. anticipate the dollar’s exchange rate against the euro to remain constant D. have no anticipation concerning future movements in the dollar/euro exchange rate...

Consulting firms that use large-scale econometric models to forecast exchange rate movements are engaging in ?

A. judgmental analysis B. fundamental analysis C. technical analysis D. nontechnical analysis...

The assets market approach is most helpful in explaining ?

A. why exchange rates remain quite stable B. why governments change their money supplies C. long term exchange rate movements D. short term exchange rate movements...

Assume identical interest rates on comparable securities in the United States and foreign countries. Suppose investors anticipate that in the future the U.S dollar will depreciate against foreign currencies. investment funds would tend to ?

A. flow from the United States to foreign countries B. flow from foreign countries to the United States C. remain totally in foreign countries D. remain totally in the United States...

Assume that a Big Mac hamburger cost $3 in the United States 2 pesos in Mexico The implied purchasing power parity exchange rate between the peso and the dollar is ?

A. 0.67 pesos = $1 B. 0.8 pesos = $1 C. 1.25 pesos = $1 D. 1.67 pesos = $1...