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

Related Mcqs:

Relatively high real interest rates in the United States tend to ?

A. decrease the foreign demand for dollars causing the dollar to depreciate B. decrease the foreign demand for dollars causing the dollar to appreciate C. increase the foreign demand for dollars causing the dollar to depreciate D. increase the foreign demand for dollars causing the dollar to appreciate...

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 exchange value of the U.S dollar is primarily determined by ?

A. the rate of inflation in the United States B. the number of dollars printed by the U.S government C. the international demand and supply for dollars D. the monetary value of gold held at Fort Knox, Kentucky...

Relatively low real interest rates in the United States tend to ?

A. decrease the foreign demand for dollars causing the dollar to depreciate B. decrease the foreign demand for dollars causing the dollar to appreciate C. increase the foreign demand for dollars causing the dollar to depreciate D. decrease the foreign demand for dollars causing the dollar to appreciate...

Assume that the United States faces a percent inflation rate while no (zero) inflation exists in Japan. According to the purchasing power parity theory over the long run the dollar would be expected to ?

A. appreciate by 8 percent against the yen B. depreciate by 8 percent against the yen C. remain at its existing exchange rate None of the above...