Question
Question 1
Question 2
Question 3
Question 4
Question 5
Question 6
A) If 100 U.S. dollars traded for 150 Canadian dollars yesterday, but 150 U.S. dollars trades for 300 Canadian dollars today, which of the following is correct? (1 point)
The U.S. dollar appreciated with respect to the Canadian dollar, and the Canadian dollar depreciated with respect to the U.S. dollar.
The U.S. dollar depreciated with respect to the Canadian dollar, and the Canadian dollar depreciated with respect to the U.S. dollar.
The U.S. dollar depreciated with respect to the Canadian dollar, and the Canadian dollar appreciated with respect to the U.S. dollar.
The U.S. dollar appreciated with respect to the Canadian dollar, and the Canadian dollar appreciated with respect to the U.S. dollar.
A) One U.S. dollar trades for 110 yen. Which of the following correctly explains the effect on Japanese automobile prices for holders of U.S. dollars if the U.S. dollar appreciated relative to the yen?
(1 point)
Since one U.S. dollar is worth more yen, Japanese automobiles are relatively more expensive to holders of U.S. dollars.
Since one U.S. dollar is worth more yen, Japanese automobiles are relatively less expensive to holders of U.S. dollars.
Since one U.S. dollar is worth fewer yen, Japanese automobiles are relatively more expensive to holders of U.S. dollars.
Since one U.S. dollar is worth fewer yen, Japanese automobiles are relatively less expensive to holders of U.S. dollars.
A) If the inflation rate in New Zealand were to rise relative to the inflation rate in Russia, which of the following correctly explains what would happen to the exchange rate for the New Zealand dollar in
terms of Russian rubles? (1 point)
The rubles-per-dollar exchange rate would rise since the inflation rate increases the supply of dollars and decreases the demand for dollars.
The rubles-per-dollar exchange rate would fall since the inflation increases the supply of dollars and decreases the demand for dollars.
The rubles-per-dollar exchange rate would fall since the inflation decreases the supply of dollars and increases the demand for dollars.
The rubles-per-dollar exchange rate would rise since the inflation decreases the supply of dollars and increases the demand for dollars.
A) If the inflation rate in New Zealand were to rise relative to the inflation rate in Russia Australia, which of the following correctly explains what would happen to the demand for Australian or New Zealand
goods? (1 point)
There is no way of gauging the impact of inflation without more details regarding New Zealand's imports and exports.
Demand for Australian goods will rise.
Demand for New Zealand goods will rise.
Inflation in New Zealand will not change the demand for either countries' goods.
A) Interest rates in Brazil are rising relative to those in the United States. Which of the following correctly describes the change in values of the Brazilian real (Brazil's currency) and the U.S. dollar with
respect to one another? (1 point)
The U.S. dollar is depreciating while the Brazilian real is depreciating.
The U.S. dollar is depreciating while the Brazilian real is appreciating.
The U.S. dollar is appreciating while the Brazilian real is depreciating.
The U.S. dollar is appreciating while the Brazilian real is appreciating.
A) If the United Kingdom's pound sterling is depreciating with respect to currencies in the rest of the world, which of the following correctly explains the resulting impact on the United Kingdom's balance of
trade? (1 point)
The United Kingdom will likely export more goods, decreasing its balance of trade with the rest of the world.
The United Kingdom will likely import more goods, increasing its balance of trade with the rest of the world.
The United Kingdom will likely import more goods, decreasing its balance of trade with the rest of the world.
The United Kingdom will likely export more goods, increasing its balance of trade with the rest of the world
Question 2
Question 3
Question 4
Question 5
Question 6
A) If 100 U.S. dollars traded for 150 Canadian dollars yesterday, but 150 U.S. dollars trades for 300 Canadian dollars today, which of the following is correct? (1 point)
The U.S. dollar appreciated with respect to the Canadian dollar, and the Canadian dollar depreciated with respect to the U.S. dollar.
The U.S. dollar depreciated with respect to the Canadian dollar, and the Canadian dollar depreciated with respect to the U.S. dollar.
The U.S. dollar depreciated with respect to the Canadian dollar, and the Canadian dollar appreciated with respect to the U.S. dollar.
The U.S. dollar appreciated with respect to the Canadian dollar, and the Canadian dollar appreciated with respect to the U.S. dollar.
A) One U.S. dollar trades for 110 yen. Which of the following correctly explains the effect on Japanese automobile prices for holders of U.S. dollars if the U.S. dollar appreciated relative to the yen?
(1 point)
Since one U.S. dollar is worth more yen, Japanese automobiles are relatively more expensive to holders of U.S. dollars.
Since one U.S. dollar is worth more yen, Japanese automobiles are relatively less expensive to holders of U.S. dollars.
Since one U.S. dollar is worth fewer yen, Japanese automobiles are relatively more expensive to holders of U.S. dollars.
Since one U.S. dollar is worth fewer yen, Japanese automobiles are relatively less expensive to holders of U.S. dollars.
A) If the inflation rate in New Zealand were to rise relative to the inflation rate in Russia, which of the following correctly explains what would happen to the exchange rate for the New Zealand dollar in
terms of Russian rubles? (1 point)
The rubles-per-dollar exchange rate would rise since the inflation rate increases the supply of dollars and decreases the demand for dollars.
The rubles-per-dollar exchange rate would fall since the inflation increases the supply of dollars and decreases the demand for dollars.
The rubles-per-dollar exchange rate would fall since the inflation decreases the supply of dollars and increases the demand for dollars.
The rubles-per-dollar exchange rate would rise since the inflation decreases the supply of dollars and increases the demand for dollars.
A) If the inflation rate in New Zealand were to rise relative to the inflation rate in Russia Australia, which of the following correctly explains what would happen to the demand for Australian or New Zealand
goods? (1 point)
There is no way of gauging the impact of inflation without more details regarding New Zealand's imports and exports.
Demand for Australian goods will rise.
Demand for New Zealand goods will rise.
Inflation in New Zealand will not change the demand for either countries' goods.
A) Interest rates in Brazil are rising relative to those in the United States. Which of the following correctly describes the change in values of the Brazilian real (Brazil's currency) and the U.S. dollar with
respect to one another? (1 point)
The U.S. dollar is depreciating while the Brazilian real is depreciating.
The U.S. dollar is depreciating while the Brazilian real is appreciating.
The U.S. dollar is appreciating while the Brazilian real is depreciating.
The U.S. dollar is appreciating while the Brazilian real is appreciating.
A) If the United Kingdom's pound sterling is depreciating with respect to currencies in the rest of the world, which of the following correctly explains the resulting impact on the United Kingdom's balance of
trade? (1 point)
The United Kingdom will likely export more goods, decreasing its balance of trade with the rest of the world.
The United Kingdom will likely import more goods, increasing its balance of trade with the rest of the world.
The United Kingdom will likely import more goods, decreasing its balance of trade with the rest of the world.
The United Kingdom will likely export more goods, increasing its balance of trade with the rest of the world
Answers
GPT-4o mini
Here are the correct answers to each of your questions:
1. **For the exchange rates yesterday and today:**
- **Correct Answer:** The U.S. dollar depreciated with respect to the Canadian dollar, and the Canadian dollar appreciated with respect to the U.S. dollar.
- **Explanation:** Initially, 100 USD traded for 150 CAD, giving an exchange rate of 1.5 CAD per USD. Today, 150 USD trades for 300 CAD, which also gives an exchange rate of 2 CAD per USD. An increase in the rate means the USD has lost value against CAD (depreciated), while CAD has gained value (appreciated).
2. **About the effect on Japanese automobile prices:**
- **Correct Answer:** Since one U.S. dollar is worth more yen, Japanese automobiles are relatively less expensive to holders of U.S. dollars.
- **Explanation:** If the U.S. dollar appreciates against the yen, it means holders of U.S. dollars can buy more yen with their dollars, making goods priced in yen (like Japanese automobiles) cheaper for them.
3. **Effect of inflation in New Zealand on exchange rates:**
- **Correct Answer:** The rubles-per-dollar exchange rate would fall since the inflation increases the supply of dollars and decreases the demand for dollars.
- **Explanation:** Higher inflation in New Zealand relative to Russia implies that New Zealand dollars would be less valuable in the future, leading to an increased supply and reduced demand for the New Zealand dollar, causing the exchange rate to fall.
4. **Demand for goods following inflation in New Zealand:**
- **Correct Answer:** Demand for Australian goods will rise.
- **Explanation:** With rising inflation in New Zealand, the purchasing power of New Zealand residents decreases, potentially leading them to seek cheaper alternatives, such as goods from Australia.
5. **Interest rate changes in Brazil relative to the U.S.:**
- **Correct Answer:** The U.S. dollar is depreciating while the Brazilian real is appreciating.
- **Explanation:** Higher interest rates in Brazil attract foreign capital, increasing demand for the Brazilian real. Conversely, if capital flows out of the U.S., the U.S. dollar depreciates relative to the Brazilian real.
6. **Impact of the UK pound depreciating on balance of trade:**
- **Correct Answer:** The United Kingdom will likely export more goods, increasing its balance of trade with the rest of the world.
- **Explanation:** A depreciating pound makes UK goods cheaper for foreign buyers, which typically leads to an increase in exports, positively affecting the balance of trade.
1. **For the exchange rates yesterday and today:**
- **Correct Answer:** The U.S. dollar depreciated with respect to the Canadian dollar, and the Canadian dollar appreciated with respect to the U.S. dollar.
- **Explanation:** Initially, 100 USD traded for 150 CAD, giving an exchange rate of 1.5 CAD per USD. Today, 150 USD trades for 300 CAD, which also gives an exchange rate of 2 CAD per USD. An increase in the rate means the USD has lost value against CAD (depreciated), while CAD has gained value (appreciated).
2. **About the effect on Japanese automobile prices:**
- **Correct Answer:** Since one U.S. dollar is worth more yen, Japanese automobiles are relatively less expensive to holders of U.S. dollars.
- **Explanation:** If the U.S. dollar appreciates against the yen, it means holders of U.S. dollars can buy more yen with their dollars, making goods priced in yen (like Japanese automobiles) cheaper for them.
3. **Effect of inflation in New Zealand on exchange rates:**
- **Correct Answer:** The rubles-per-dollar exchange rate would fall since the inflation increases the supply of dollars and decreases the demand for dollars.
- **Explanation:** Higher inflation in New Zealand relative to Russia implies that New Zealand dollars would be less valuable in the future, leading to an increased supply and reduced demand for the New Zealand dollar, causing the exchange rate to fall.
4. **Demand for goods following inflation in New Zealand:**
- **Correct Answer:** Demand for Australian goods will rise.
- **Explanation:** With rising inflation in New Zealand, the purchasing power of New Zealand residents decreases, potentially leading them to seek cheaper alternatives, such as goods from Australia.
5. **Interest rate changes in Brazil relative to the U.S.:**
- **Correct Answer:** The U.S. dollar is depreciating while the Brazilian real is appreciating.
- **Explanation:** Higher interest rates in Brazil attract foreign capital, increasing demand for the Brazilian real. Conversely, if capital flows out of the U.S., the U.S. dollar depreciates relative to the Brazilian real.
6. **Impact of the UK pound depreciating on balance of trade:**
- **Correct Answer:** The United Kingdom will likely export more goods, increasing its balance of trade with the rest of the world.
- **Explanation:** A depreciating pound makes UK goods cheaper for foreign buyers, which typically leads to an increase in exports, positively affecting the balance of trade.