Please I need the correct answers since this is test Which of the following woul
ID: 1145270 • Letter: P
Question
Please I need the correct answers since this is test
Which of the following would cause the U.S dollar (USD) to appreciate as compared to Croatian kuna?
Interest rates in the Croatia decrease
American consumers prefer to buy creation goods
Croatian income decreases
GDP in the Croatia decreases
GDP in the united states increases
If the demand for Cyprus pound increases relative to the U.S dollar, then the
U.S dollar will appreciate
Supply of U.S dollars would decrease
Quantity supplied of Cyprio t pound would decrease
Cypriot pound would appreciate
Cypriot pound will depreciate
When the U.S dollar appreciates against the Maltese liri, then
American tourists who travel to Malta will benefit from the new exchange rate
Tourists from Malta will benefit from the new exchange rate
Maltese businessmen will purchase more American intermediate goods
American businessmen will purchase more American intermediate goods
There will be a decrease in demand for the U.S dollar
When the U.S dollar depreciates against the Mexican peso, then
Tourists who travel to Mexico will benefit from the new exchange rate
Mexican beef is less expensive for American consumers
The Mexican government will purchase more American wheat
American Jewelers will import more silver Jewelry from Mexico
Mexican workers in America owned factories will receive a higher wage
Explanation / Answer
1. Interest rates in the Croatia decrease.
Decrease in Croatia interest rate reduce the demand of Kuna while increases demand of other currency i.e. dollar. So, demand of dollar increases and resulted into appreciation of dollar.
2. Cypriot pound would appreciate.
3. American tourists who travel to Malta will benefit from the new exchange rate.
This is because Malta trip becomes less expensive for American tourists after appreciation of USA dollar.
4. The Mexican government will purchase more American wheat
Due to dollar depreciation, American wheat become less expensive for Mexican government so it will buy more wheat.