If Japan runs current account deficit and exchange rates are floating?

Related Mcqs:

The relationship between the exchange rate and the prices of tradable goods is known as the ?

A. purchasing power parity theory B. asset markets theory C. monetary theory D. balance of payments theory...

Given a system of floating exchange rates rising income in the United States would trigger a (an) ?

A. increasing in the demand for imports and an increasing in the demand for foreign currency B. increase in the demand for imports and decrease in the demand for foreign currency C. decrease in the demand for imports and an increase in the demand for foreign currency D. decrease in the demand for imports and … Given a system of floating exchange rates rising income in the United States would trigger a (an) ?Read More...

Under a system of floating exchange rates relatively low productivity and high inflation rates in the United States results in a (an) ?

A. increase in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar B. increase in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar C. decrease in the demand for foreign currency a decrease in … Under a system of floating exchange rates relatively low productivity and high inflation rates in the United States results in a (an) ?Read More...

According to the asset market approach increased investor confidence in the Mexican economy would cause the peso to ?

A. appreciate because of an increase supply of peso denominated assets B. depreciate because of an increased supply of peso denominated assets C. appreciated because of an increased demand for peso denominated assets D. depreciated because of an increased demand for peso denominated assets...

Which example of market expectations causes the dollar to appreciate against the yen– expectations that the U.S economy will have ?

A. faster economic growth than Japan B. higher future interest rates than Japan C. more rapid money supply growth than japan D. higher inflation rates than japan...