Search
.Management Sciences
Category: Exchange-Rate Adjustments And The Balance of
If foreign manufacturing costs and profit margins in response to a depreciation in the U.S dollar the effect of these actions is to ?
A. shorten the amount of time in which the depreciation leads to smaller trade deficit
B. shorten the amount of time in which the depreciation leads to smaller trade surplus
C. lengthen the amount of time in which the depreciation leads to smaller trade deficit
D. lengthen the amount of time in which the depreciation leads to smaller trade surplus
The analysis considers the ability of domestic and foreign price of adjust to devaluation in the short run ?
A. pass through
B. absorption
C. adjustment mechanism
D. currency contract period
The extent to which a change in the exchange rate leads to changes in import and export prices is known as the ?
A. J Curve effect
B. Marshall Lerner effect
C. absorption effect
D. pass through effect
The notion that, following a currency depreciation the balance of trade falls for a while before increasing is called an effect ?
A. relative price
B. elasticity
C. J Curve
D. Pass through
Suppose that the United Kingdom devalues the pound if both exports and imports are written in terms of pounds then the United Kingdom balance of trade during a currency contract period ?
A. improves
B. worsens
C. is unaffected
D. falls for a while before increasing
Given a two-country world, suppose Japan devalues the yen by 20 percent and west German devalues the mark by 15 percent This result is a (an)?
A. appreciation in the value of both currencies
B. depreciation in the value of both currencies
C. appreciation in the value of the yen against the mark
D. depreciation in the value of the yen against the mark
Economic theory predicts that a currency depreciation will least lead to an improvement in the home country’s trade balance when ?
A. home demand for imports is inelastic and foreign export demand is inelastic
B. home demand for imports is elastic and foreign export demand is inelastic
C. home demand for imports is inelastic and foreign export demand is elastic
D. home demand for imports is elastic and foreign export demand is elastic
Suppose that U.S dollar depreciates 70 percent against the yen yet Japanese export prices to Americans did not decrease by the full extent of the dollar depreciation. This is best explained by ?
A. partial currency pass through
B. complete currency pass through
C. partial J curve effect
D. complete J curve effect
Recent Comments