Q7. The Japanese government has decided that it wants to maintain a constant exchange rate with the U.S. dollar at a time when supply and demand conditions in the foreign exchange market are causing the Japanese yen to appreciate. Which of the following actions would most likely achieve their objective? A) Reduce taxes and create a budget deficit in order to increase domestic interest rates. B) A shift to a more expansionary monetary policy. C) A shift to a more restrictive monetary policy.
Q8. A country’s real interest rate has declined relative to its major trading partners. What will most likely be the effects on the demand for the country’s currency and on aggregate demand, respectively? A) Both will decrease. B) Only one will increase. C) Both will increase.
Q9. If a German electronics manufacturer builds an electronics plant in Mexico, this action will create which of the following with regards to the demand and supply of the euro and the peso in the foreign exchange market? This action creates a: A) demand for both pesos and euros in the foreign exchange market. B) demand for pesos and a supply of euros in the foreign exchange market. C) supply of pesos and demand for euros in the foreign exchange market.
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发表于 2009-1-13 11:17
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