Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium its balance of payments would move into a surplus position if there occurred in the nation a (an) ?

Related Mcqs:

When the price of foreign currency (i.e the exchange rate) is below the equilibrium level ?

A. an excess demand for that currency exists in the foreign exchange market B. an excess supply of the currency exists in the foreign exchange market C. the demand for foreign exchange shifts outward to the right D. the demand for foreign exchange shifts backward to the left...

The appreciation in the value of the dollar in the early 1980s is explained by all of the following except ?

A. the United States being considered a safe haven by foreign investors B. relatively high real interest rates in the United States C. confidence of foreign investors in the U.S economy D. relatively high inflation rates in the United States...

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...

IF when cost $4 per bushel in the United States and 2 pounds per bushel in Great Britain then in the presence of purchasing power parity the exchange rate should be ?

A. $50 per pound B. $1.00 per pound C. $2.00 per pound D. $8.00 per pound...

The high foreign exchange value of the U.S dollar in the early 1980s can best be explained by ?

A. additional investment funds made available from overseas B. lack of investor confidence in U.S fiscal policy C. market expectations of rising inflation in the United States D. American tourists overseas finding costs increasing...