Assigned i eal-Time Data Analysis Exercise se the following data to work this pr

Question

Assigned i eal-Time Data Analysis Exercise se the following data to work this problem n June 20,2018, the U.S dollar was trading at 110 yen per U.S dollar on the foreign exchange market On September, 14, 2018, the U.S. dollar was trading at 112 yen per U.S dollar Real-ame data provwded by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis Click here ta seet a What events in the foreign exchange market could have brought this rise in the value of the U.S dollar? Answer by typing Y for "Yes" or N for "No" 1. World demand for US exports increases 2. World demand for U.S. exports decreases 3. U.S. import demand increases. 4. U.S. import demand decreases 5. The US. interest rate differential nises 6. The U.S interest rate differential falls. . The expected fiture exchange rate rises. 8. The expected future exchange rate lalls. pter Enter your anewer in the edit felds and then click Check Ansuer F8 F10 F12 rtscn F6 0 4E567

Explanation / Answer

1

Y

When exports increases the demand for US goods increases which appreciates the US. dollar

2

N

3

N

4

Y

When the productivity of US increases the demand for US goods increases which reduces imports, hence the US. Dollar appreciates

5

Y

When the interest differential rises, the demand for US dollar increases as people can earn more with high interest rates in banks which causes the US. Dollar to appreciate

6

N

7

Y

If investors feel that the US dollar would appreciate in the future then demand for US dollar increases which causes the US. Dollar to appreciate

8

N

1

Y

When exports increases the demand for US goods increases which appreciates the US. dollar

2

N

3

N

4

Y

When the productivity of US increases the demand for US goods increases which reduces imports, hence the US. Dollar appreciates

5

Y

When the interest differential rises, the demand for US dollar increases as people can earn more with high interest rates in banks which causes the US. Dollar to appreciate

6

N

7

Y

If investors feel that the US dollar would appreciate in the future then demand for US dollar increases which causes the US. Dollar to appreciate

8

N

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