ECON 2035 CH 8 WITH ALL QUESTIONS AND CORRECT ANSWERS
100% VERIFIED!!!!! ALREADY GRADED A+
About what percentage of the goods and services purchased by U.S. consumers, businesses, and
governments in 2016 were produced by foreigners?
A) 5%
B) 13%
C) 16%
D) 40% - (ANSWER)B) 13%
About what percentage of U.S. output was exported to foreigners in 2016?
A) 1%
B) 13%
C) 16%
D) 25%
Answer: B - (ANSWER)B) 13%
we import more than we export! (16>13)
Since the 1960s, the percentage of U.S. output exported to foreigners
A) remained about the same.
B) more than doubled.
C) increased by more than ten times.
D) declined by about half. - (ANSWER)B) more than doubled.
The nominal exchange rate is
A) the difference between the interest rate in one country and the interest rate in another country.
B) the rate at which a bond may be exchanged for currency.
C) the rate at which a stock may be exchanged for currency.
,ECON 2035 CH 8 WITH ALL QUESTIONS AND CORRECT ANSWERS
100% VERIFIED!!!!! ALREADY GRADED A+
D) the price of one country's currency in terms of another's. - (ANSWER)D) the price of one country's
currency in terms of another's.
A change in the dollar value of the British pound from $1.60 to $1.50 represents
A) an increase in the pound price of British goods.
B) an appreciation of the dollar relative to the pound.
C) an appreciation of the pound relative to the dollar.
D) an increase in the dollar price of British goods. - (ANSWER)B) an appreciation of the dollar relative to
the pound.
When a country's nominal exchange rate appreciates, the price of
A) that country's goods abroad increases.
B) that country's goods abroad decreases.
C) foreign goods sold in the country increases.
D) that country's goods produced and sold at home increases. - (ANSWER)A) that country's goods abroad
increases.
When a country's nominal exchange rate depreciates, the price of
A) that country's goods abroad increases.
B) that country's goods abroad decreases.
C) foreign goods sold in the country decreases.
D) that country's goods produced and sold at home decreases - (ANSWER)B) that country's goods abroad
decreases.
If the Japanese yen appreciates against the U.S. dollar
A) Japanese businesses gain by a decrease in the dollar price of exports to the United States.
B) Japanese consumers gain by a decrease in the yen price of U.S. exports to Japan.
C) Japanese consumers lose by an increase in the yen price of U.S. exports to Japan.
, ECON 2035 CH 8 WITH ALL QUESTIONS AND CORRECT ANSWERS
100% VERIFIED!!!!! ALREADY GRADED A+
D) U.S. consumers gain by a decrease in the dollar price of Japanese exports to the United States -
(ANSWER)B) Japanese consumers gain by a decrease in the yen price of U.S. exports to Japan
If the British pound depreciates against the U.S. dollar
A) British businesses gain by an increase in the dollar price of exports to the United States.
B) British consumers gain by a decrease in the pound price of U.S. exports to Britain.
C) British consumers lose by an increase in the pound price of U.S. exports to Britain.
D) U.S. consumers lose by an increase in the dollar price of British exports to the United States -
(ANSWER)C) British consumers lose by an increase in the pound price of U.S. exports to Britain.
A substantial appreciation of the U.S. dollar will likely result in, all else equal
A) lower demand for U.S. products and layoffs of U.S. workers.
B) increased demand for U.S. products and increased employment of U.S. workers.
C) lower foreign currency prices of U.S. products in foreign countries.
D) higher U.S. dollar prices of foreign products in the United States - (ANSWER)A) lower demand for U.S.
products and layoffs of U.S. workers.
Nominal exchange rates differ from real exchange rates in that nominal exchange rates
A) do not correct for differing interest rates across countries.
B) do not measure the purchasing power of the currency.
C) are fixed, while real exchange rates are flexible.
D) are flexible, while real exchange rates are fixed - (ANSWER)B) do not measure the purchasing power
of the currency
The relation between the nominal and real exchange rates is given by which of the following equations?
A) E = (e × PDomestic) / PForeign
B) e = E × (PDomestic / PForeign)
C) E = (e × PForeign) / PDomestic
100% VERIFIED!!!!! ALREADY GRADED A+
About what percentage of the goods and services purchased by U.S. consumers, businesses, and
governments in 2016 were produced by foreigners?
A) 5%
B) 13%
C) 16%
D) 40% - (ANSWER)B) 13%
About what percentage of U.S. output was exported to foreigners in 2016?
A) 1%
B) 13%
C) 16%
D) 25%
Answer: B - (ANSWER)B) 13%
we import more than we export! (16>13)
Since the 1960s, the percentage of U.S. output exported to foreigners
A) remained about the same.
B) more than doubled.
C) increased by more than ten times.
D) declined by about half. - (ANSWER)B) more than doubled.
The nominal exchange rate is
A) the difference between the interest rate in one country and the interest rate in another country.
B) the rate at which a bond may be exchanged for currency.
C) the rate at which a stock may be exchanged for currency.
,ECON 2035 CH 8 WITH ALL QUESTIONS AND CORRECT ANSWERS
100% VERIFIED!!!!! ALREADY GRADED A+
D) the price of one country's currency in terms of another's. - (ANSWER)D) the price of one country's
currency in terms of another's.
A change in the dollar value of the British pound from $1.60 to $1.50 represents
A) an increase in the pound price of British goods.
B) an appreciation of the dollar relative to the pound.
C) an appreciation of the pound relative to the dollar.
D) an increase in the dollar price of British goods. - (ANSWER)B) an appreciation of the dollar relative to
the pound.
When a country's nominal exchange rate appreciates, the price of
A) that country's goods abroad increases.
B) that country's goods abroad decreases.
C) foreign goods sold in the country increases.
D) that country's goods produced and sold at home increases. - (ANSWER)A) that country's goods abroad
increases.
When a country's nominal exchange rate depreciates, the price of
A) that country's goods abroad increases.
B) that country's goods abroad decreases.
C) foreign goods sold in the country decreases.
D) that country's goods produced and sold at home decreases - (ANSWER)B) that country's goods abroad
decreases.
If the Japanese yen appreciates against the U.S. dollar
A) Japanese businesses gain by a decrease in the dollar price of exports to the United States.
B) Japanese consumers gain by a decrease in the yen price of U.S. exports to Japan.
C) Japanese consumers lose by an increase in the yen price of U.S. exports to Japan.
, ECON 2035 CH 8 WITH ALL QUESTIONS AND CORRECT ANSWERS
100% VERIFIED!!!!! ALREADY GRADED A+
D) U.S. consumers gain by a decrease in the dollar price of Japanese exports to the United States -
(ANSWER)B) Japanese consumers gain by a decrease in the yen price of U.S. exports to Japan
If the British pound depreciates against the U.S. dollar
A) British businesses gain by an increase in the dollar price of exports to the United States.
B) British consumers gain by a decrease in the pound price of U.S. exports to Britain.
C) British consumers lose by an increase in the pound price of U.S. exports to Britain.
D) U.S. consumers lose by an increase in the dollar price of British exports to the United States -
(ANSWER)C) British consumers lose by an increase in the pound price of U.S. exports to Britain.
A substantial appreciation of the U.S. dollar will likely result in, all else equal
A) lower demand for U.S. products and layoffs of U.S. workers.
B) increased demand for U.S. products and increased employment of U.S. workers.
C) lower foreign currency prices of U.S. products in foreign countries.
D) higher U.S. dollar prices of foreign products in the United States - (ANSWER)A) lower demand for U.S.
products and layoffs of U.S. workers.
Nominal exchange rates differ from real exchange rates in that nominal exchange rates
A) do not correct for differing interest rates across countries.
B) do not measure the purchasing power of the currency.
C) are fixed, while real exchange rates are flexible.
D) are flexible, while real exchange rates are fixed - (ANSWER)B) do not measure the purchasing power
of the currency
The relation between the nominal and real exchange rates is given by which of the following equations?
A) E = (e × PDomestic) / PForeign
B) e = E × (PDomestic / PForeign)
C) E = (e × PForeign) / PDomestic
