ECON 248 Unit 5 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |
GRADED A+ | NEW UPDATE 2026
Which one of the following would result in the dollar depreciating against the
Japanese yen?
Select one:
a. a rise in the Canadian interest rate
b. a fall in the Canadian interest rate
c. a fall in the Japanese interest rate
d. an increase in the Canadian interest rate differential
e. an increase in the expected future Canadian exchange rate - ANSWERS b. a
fall in the Canadian interest rate
Which of the statements about the real exchange rate are correct?
The real exchange rate is a measure of how much of one money exchanges for a
unit of another money.
The real exchange rate is the value of the Canadian dollar expressed in units of
foreign currency per Canadian dollar.
The real exchange rate is the relative price of Canadian-produced goods and
services to foreign-produced goods and services.
The real exchange rate is a measure of the quantity of the real GDP of other
countries that we get for a unit of Canadian real GDP.
Select one:
a. Statements 1 and 3 are correct.
, b. Statements 3 and 4 are correct.
c. Statements 2 and 4 are correct.
d. Statements 2 and 3 are correct.
e. Statements 1 and 2 are correct. - ANSWERS b. Statements 3 and 4 are
correct.
Suppose that the world pandemic and the ban on international travel by countries
significantly reduces the flow of tourists to Canada. Other factors remaining
constant, the demand for Canadian dollar in the market for foreign currency
exchange will _______, leading to _______ in the value of the dollar and _______
in net exports.
Select one:
a. fall / appreciation / increase
b. rise / depreciation / decrease
c. rise / depreciation / increase
d. fall / depreciation / decrease
e. Both A and B are correct. - ANSWERS d. fall / depreciation / decrease
Suppose political instability abroad causes foreign investors to seek a safe haven
for their funds in Canada. This inflow of funds will lead to ______ Canadian
interest rates and a ______ Canadian dollar.
Select one:
a. lower / weaker
b. lower / stronger
c. higher / stronger
d. higher / weaker
DETAILED ANSWERS (VERIFIED ANSWERS) |
GRADED A+ | NEW UPDATE 2026
Which one of the following would result in the dollar depreciating against the
Japanese yen?
Select one:
a. a rise in the Canadian interest rate
b. a fall in the Canadian interest rate
c. a fall in the Japanese interest rate
d. an increase in the Canadian interest rate differential
e. an increase in the expected future Canadian exchange rate - ANSWERS b. a
fall in the Canadian interest rate
Which of the statements about the real exchange rate are correct?
The real exchange rate is a measure of how much of one money exchanges for a
unit of another money.
The real exchange rate is the value of the Canadian dollar expressed in units of
foreign currency per Canadian dollar.
The real exchange rate is the relative price of Canadian-produced goods and
services to foreign-produced goods and services.
The real exchange rate is a measure of the quantity of the real GDP of other
countries that we get for a unit of Canadian real GDP.
Select one:
a. Statements 1 and 3 are correct.
, b. Statements 3 and 4 are correct.
c. Statements 2 and 4 are correct.
d. Statements 2 and 3 are correct.
e. Statements 1 and 2 are correct. - ANSWERS b. Statements 3 and 4 are
correct.
Suppose that the world pandemic and the ban on international travel by countries
significantly reduces the flow of tourists to Canada. Other factors remaining
constant, the demand for Canadian dollar in the market for foreign currency
exchange will _______, leading to _______ in the value of the dollar and _______
in net exports.
Select one:
a. fall / appreciation / increase
b. rise / depreciation / decrease
c. rise / depreciation / increase
d. fall / depreciation / decrease
e. Both A and B are correct. - ANSWERS d. fall / depreciation / decrease
Suppose political instability abroad causes foreign investors to seek a safe haven
for their funds in Canada. This inflow of funds will lead to ______ Canadian
interest rates and a ______ Canadian dollar.
Select one:
a. lower / weaker
b. lower / stronger
c. higher / stronger
d. higher / weaker
