Exchange rate between the dollar and the pound

Reference no: EM13692571

If the exchange rate between the dollar and the pound (the pound price of the dollar) is 1.50, and is expected to be 1.65 in one year, then the expected rate of:

A) appreciation of the dollar is 15%.

B) depreciation of the dollar is 15%.

C) appreciation of the dollar is 10%.

D) depreciation of the dollar is 10%.

E) none of the above

Reference no: EM13692571

Questions Cloud

Type of technological changes in health care-cost increasing : Explain whether each of the following types of technological changes in health care is likely to be cost increasing.

Developed a model of a market utilizing supply and demand : Developed a model of a market utilizing supply and demand. What are the dominant variables or parameters? What is surplus and what is shortage? DEMONSTRATE

Determine the cost basis of the three cells : Delivery and insurance charges were $40,000, and installation of the cells cost another $50,000. (Hint: Parts (a) assume the Adjust Cost Basis is the total cost. Part (b) please refer to Table 7.2 MACRS Class Lives and Recovery Periods. Part (c) use ..

Discuss the differential effects of these two policies : Tariffs and quotas can be used to achieve similar ends. In fact, for any given quota, there is an equivalent tariff that will limit imports to exactly the same amount. Still, there are differences between quotas and tariffs.

Exchange rate between the dollar and the pound : If the exchange rate between the dollar and the pound (the pound price of the dollar) is 1.50, and is expected to be 1.65 in one year, then the expected rate of:

Exchange rate to make the conversion : Japanese GDP in 2010 was 480 trillion yen while U.S. GDP was $14.5 trillion. The exchange rate in 2010 was 87.8 yen per dollar. Japan had higher prices than the United States: the price level in Japan (converted to dollars) divided by the price level..

Calculate the deadweight loss associated with the tax : Calculate the consumer surplus, producer surplus, and government’s tax revenue. Calculate the deadweight loss associated with the tax.

Popular sporting events through the supply and demand model : Examine the market for tickets for popular sporting events through the supply and demand model. Consider the following questions: How often are you able to buy a popular event ticket (for example, the Super Bowl) at face value? How are the tickets or..

New law aimed at reducing healthcare costs : Suppose that the president proposes a new law aimed at reducing healthcare costs. All Americans are required to eat one apple daily. How would this apple a day affect the demand and equilibrium price of apples?

User Account

All Pages