# Macroeconomics Private and Public Choice

## Quiz 19 :International Finance and the Foreign Exchange Market

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If on Tuesday you can buy 125 yen per U.S. dollar and on Wednesday you can buy 120 yen per U.S. dollar,
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D

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Under a system of flexible exchange rates, which of the following will most likely cause a nation's currency to appreciate on the foreign exchange market?
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D

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Under a flexible exchange rate system, the rate that equates demand and supply in the exchange rate market also equates the
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B

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If the exchange rate has been $2.00 per British pound but now falls to$1.60 per British pound, there will be
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If the dollar price of the euro goes from \$1 to 90 cents, the euro has
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The U.S. dollar will appreciate if
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If the U.S. dollar depreciates, it means that
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As domestic income rises, net exports will tend to
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An increase in incomes in other countries, other things equal, would tend to cause U.S.
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If the U.S. dollar appreciates in the foreign exchange market,
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If real interest rates in the United States are higher than those of our trading partners, what will tend to happen to the foreign exchange value of the dollar and the U.S. current account deficit or surplus?
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Under a system of flexible exchange rates, an increase in demand for a nation's currency in the foreign exchange market will
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If the U.S. dollar appreciates, it means that
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If a country fixes the exchange-rate value of its currency, it will have to
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A depreciation in the value of the U.S. dollar would
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An increase in the U.S. demand for foreign exchange will cause
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If the exchange rate changes from 1 euro per U.S. dollar to 1.2 euros per U.S. dollar, the Euro has
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Suppose a German-produced car becomes very popular in the United States. This would tend to
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