Please answers only, don\'t need explanation Suppose the British demand for real
ID: 1126759 • Letter: P
Question
Please answers only, don't need explanation
Suppose the British demand for real estate in the United States increases due to a booming real estate market. What would we expect to happen in the foreign exchange market, holding all other factors constant? Oa. The dollar could appreciate or depreciate, but fewer dollars will be traded. Ob. The dollar will appreciate and more dollars will be traded. Oc. The dollar will depreciate and fewer dollars will be traded. Od. The dollar will appreciate and fewer dollars will be traded. Oe. The dollar will depreciate and more dollars will be traded. QUESTION 3 Suppose the Japanese demand for products made in the United States declines due to a recession in Japan. What would we expect to happen in the foreign exchange market, holding all other factors constant? Oa. The dollar will appreciate and fewer dollars will be traded. Ob. The dollar will appreciate and more dollars will be traded. Oc. The dollar will depreciate and more dollars will be traded. Od. The dollar will depreciate and fewer dollars will be traded. Oe. The dollar could appreciate or depreciate, but fewer dollars will be traded. QUESTION 4 Which one of the following statements best explains why U.S. monetary policy in an open economy is more effective than in a closed economy? Oa. Lowering interest rates increases foreign direct investment, thus leading to an increase in aggregate demand. Ob. Lowering interest rates causes the dollar to depreciate, which increases exports and decreases imports, thus increasing aggregate demand. Oc. Lowering interest rates means that U.S. citizens can increase their borrowing and increase their expenditures on foreign goods, thus increasing aggregate demand. Od. Lowering interest rates decreases foreign direct investment, allowing for more domestic investment, thus increasing aggregate demand. Oe. Lowering interest rates causes the dollar to appreciate, which increases imports and decreases exports, thus increasing aggregate demand.Explanation / Answer
Ans: The dollar will appreciate and more dollar will be traded.
3.Ans: The dollars will depreciate and few dollars will be traded.
4.Ans: Lowering interest rates decreases foreign direct investment , allowing for morw domwstic investment , thus increasing aggregate demand.