Foreign currency per unit of domestic currency decreases

Assignment Help Business Economics
Reference no: EM13834849

Everything else held constant, when the nominal exchange rate in units of foreign currency per unit of domestic currency decreases, the ________ domestic assets ________.

A. quantity supplied of; increases

B. quantity demanded of; increases

C. demand for; increases

D. quantity demanded of; decreases

Reference no: EM13834849

Questions Cloud

Calculating robust errors versus-conducting weighted squares : Suppose you detect heteroskedasicity and /or auto correlated errors in your regression. What is the difference between (I) calculating robust errors versus (ii) conducting a weighted least squares or feasible generalized least squares analysis.
According to the theory of rational expectations : According to the theory of rational expectations, individuals will respond to expansionary monetary policy by:
Decreased demand for a countrys exports causes : Everything else held constant, decreased demand for a country's exports causes its currency to ________ in the long run, and increased demand for imports into the country causes its currency to ________.
Decrease in the domestic interest rate : A decrease in the domestic interest rate causes the demand for domestic assets to shift to the ________ and the domestic currency to ________, everything else held constant
Foreign currency per unit of domestic currency decreases : Everything else held constant, when the nominal exchange rate in units of foreign currency per unit of domestic currency decreases, the ________ domestic assets ________.
Purchasing power parity predict the nominal exchange rate : Given the above information that the US CPI = 235, UK CPI = 215, and the current nominal exchange rate = .85 pound per dollar, what does the Theory of Purchasing Power Parity predict the nominal exchange rate to adjust to? Enter your answer in pound(..
What is the implied nominal exchange rate : If the Law of One Price holds true, what is the implied nominal exchange rate? Enter your answer as the number of Yuan per dollar. Round to the nearest whole Yuan.
Latest consumer price index : Suppose that the latest Consumer Price Index (CPI) release shows a higher inflation rate in the U.S. than was expected. Everything else held constant, the release of the CPI report would immediately cause the demand for U.S. assets to ________ and th..
Domestic interest rate causes the demand for domestic assets : A decrease in the domestic interest rate causes the demand for domestic assets to ________ and the domestic currency to ________, everything else held constant.

Reviews

Write a Review

Business Economics Questions & Answers

  When using balance sheet items to calculate ratios

You are the assistant to the CEO of a major company. Your CEO keeps an eye on the competition, and asks you to do the following. Using ratio analysis, compare two major competitors in the same industry. One of your two companies can be the same compa..

  What are major institutional changes take place development

What are the major institutional changes that take place with economic development? Are these institutional changes causes or mere correlations of growth? Or is growth a cause of institutional change?

  What factors can contribute to unemployment

For this week's assignment you will create a financial plan to be prepared for economic fluctuations. What factors can contribute to unemployment? How can technology lead to greater unemployment, or is it a benefit to the economy? Can inflation cause..

  Characteristic of a monopoly

Which of the following is a characteristic of a monopoly?

  Explain how would you describe this industry

Industry structure is often measured by computing the Four-Firm Concentration Ratio. Suppose you have an industry with 20 firms and the CR is 30. Explain how would you describe this industry.

  What does disposable income consist of

What was disposable income (DI) for 2009? What does disposable income consist of? How did DI change from 2008? What caused these changes? 4. Does GDP measure the well-being of society? Why or why not? 5. What was GDP in 2008 (sometimes called GSP) ..

  Who were the stakeholders primary also secondary most

Who were the stakeholders primary also secondary most affected by Google's original decision to self-censor in China.

  Interest on payday loans

What do you imagine about the interest on payday loans is too high or just right.

  What are the elements of negligence-anticipatory repudiation

What is anticipatory repudiation? Why is it important to be able to identify this type of a breach? How does it benefit the non-breaching party? What are the elements of negligence? What kind of damages is available under a negligence claim?

  Tribes that receive sovereign government status

Tribes that receive sovereign government status, are listed with other similar tribes, and have a Federal trust relationship with the Federal Government are referred to as:

  Illustrate what would be the size of resulting deadweight

Illustrate what would be the size of the resulting deadweight loss relative to the competitive outcome.

  Disadvantages of the ethnocentric-polycentric-region-centric

What are the main advantages and disadvantages of the ethnocentric, polycentric, region-centric, and geocentric approaches to staffing policy? When is each approach appropriate? Be sure to relate the different global staffing approaches to strategy. ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd