If a dollar is cheaper in terms of a foreign currency than the equilibrium exchange rate, a

Question:

If a dollar is cheaper in terms of a foreign currency than the equilibrium exchange rate, a ___ exists at the current exchange rate that will put ___ pressure on the exchange value of a dollar.

a. surplus of dollars; downward

b. surplus of dollars; upward

c. shortage of dollars; downward

d. shortage of dollars; upward

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Exploring Microeconomics

ISBN: 9781544339443

8th Edition

Authors: Robert L. Sexton

See More Books

Question Posted: May 19, 2024 12:01 PM

See More Questions

Multiple Choice Questions: 1. Suppose that the dollar rises from 100 to 125 yen. As a result? a. Exports to Japan will likely increase. b. Japanese tourists will be more likely to visit the United...
Draw a diagram, similar to Figure 19-10, representing the foreign exchange situation of China when it kept the exchange rate fixed. (Hint: Express the exchange rate as U.S. dollars per yuan.) Then...
Gold has served as a medium of exchange and a store of value. The increase in trade led each country to set a par value for its currency in terms of gold. The gold standard as an international...
Consider examples 9.2 and 9.3. Assume that social damage is quadratic as in the examples. Following section 9.2.3, assume that the regulator can only set a uniform tax. Determine the formula for the...
A compound (C11H14O) has a strong peak in its infrared spectrum near 1700 cm-1. Its 200- MHz 1H NMR spectrum is shown in Figure 17.18. What is the structure of the compound?
In below Problems, find the average value of each function over the given interval. 1. f (x)=9-x2 over [0, 3] 2. f (x)=2x-x2 over [0, 2] 3. f (x)=x3-x over [-1, 1] 4. f (x)=1/2 x3+1 over [-2, 0] 5. f...
What is the value of the golden ratio to the nearest thousandth?
A firm is having a large piece of equipment overhauled. It anticipates that the machine will be needed for the next 12 years. The firm has an 8% minimum attractive rate of return. The contractor has...
New Morning Bakery is in the process of closing its operations. It sold its two - year - old bakery ovens to Great Harvest Bakery for $ 6 4 0 , 0 0 0 . The ovens originally cost $ 8 4 4 , 0 0 0 , had...
A current account is a record of a countrys current _________ and _________ of goods and services.
What are the major arguments against flexible rates?
In what situations do the Government Auditing Standards apply?
Grill Inc. produces durable barbecue covers that sell for $150.00 each.Currently,the company produces and sells 15,000 cover units per year and has the following costs: Direct materials per unit...
explain the statement "The central issue in variable costing is timing"? under absorption costing in what way can we increase the net operating income without increasing sales? if production exceeds...
Imagine that one of the results of this training is reflected in a 5% decrease in the turnover rate among salespeople. This provides an annual savings or benefit of $150,000 in terms of the...
Assets Cash 2004 $31.000 18,000 27,000 80,000 (30,000) $126,000 2003 $ 20,000 14,000 20,000 78,000 (24,000) $108,000 Accounts receivable Merchandise inventory Property, plant, and equipment...
The Mahar Company uses a "Just In Time" (JIT) inventory system in maintaining its direct materials inventory of Tebs. Under its JIT system, the company keeps a zero inventory level of Tebs. Five Tebs...
Look again at question 14. Suppose another month has passed, so the bill has only one month left to run. It is now selling at a discount of 5 percent. What is the yield calculated on a simple...
Flicker, Inc., a closely held corporation, acquired a passive activity this year. Gross income from operations of the activity was $160,000. Operating expenses, not including depreciation, were...
A company has fixed costs of $250,000, variable costs per unit of $5, and a selling price per unit of $18. Calculate the breakeven point in units and dollars, and evaluate the company's cost...
The balance sheet of XYZ Ltd. on December 31, 2023, is provided below: Item Amount ($) Accounts Payable 1,230,000 Notes Payable 1,210,000 Accrued Expenses 1,090,000 Total Current Liabilities ?...
Calculate Debt to Equity Ratio: Requirements: Given the balance sheet information: Total Debt: $300,000 Total Equity: $450,000 Compute the debt to equity ratio. Express the debt to equity ratio as a...

If a dollar is cheaper in terms of a foreign currency than the equilibrium exchange rate, a

Question:

Step by Step Answer:

Exploring Microeconomics

Students also viewed these Business questions