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

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...

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...

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) ?

A. decrease in the money supply B. increase in the money supply C. decrease in the money demand D. None of the above...

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...