Chapter 18 International Trade and Finance

| November 9, 2018

33)
Referring to Figure 18.3, the effect of a decrease in Japanese interest rates
is represented by a movement from point
A)
b to a.
B)
a to b.
C)
b to c.
D)
a to d.

34)
Referring to Figure 18.3, the effect of an increase in Japanese prices is
represented by a movement from point
A)
d to c.
B)
c to d.
C)
a to b.
D)
a to d.

35)
A(n) ________ in U.S. interest rates will cause a decrease in the demand for
U.S. dollars and a(n) ________ in the (per dollar) exchange rate.
A)
increase; increase
B)
increase; decrease
C)
decrease; increase
D)
decrease; decrease

36)
A(n) ________ in U.S. interest rates will cause an increase in the demand for
U.S. dollars and a(n) ________ in the (per dollar) exchange rate.
A)
increase; increase
B)
increase; decrease
C)
decrease; increase
D)
decrease; decrease

37)
A(n) ________ in U.S. prices will cause a decrease in the demand for U.S.
dollars and a(n) ________ in the (per dollar) exchange rate.
A)
increase; increase
B)
increase; decrease
C)
decrease; increase
D)
decrease; decrease

38)
A(n) ________ in U.S. prices will cause an increase in the demand for U.S.
dollars and a(n) ________ in the (per dollar) exchange rate.
A)
increase; increase
B)
increase; decrease
C)
decrease; increase
D)
decrease; decrease

39)
An increase in Swiss interest rates will cause
A)
an increase in the demand for U.S. dollars and an increase in the exchange rate
of Swiss francs per dollar.
B)
a decrease in the demand for U.S. dollars and a decrease in the exchange rate
of Swiss francs per dollar.
C)
an increase in the supply of U.S. dollars and a decrease in the exchange rate
of Swiss francs per dollar.
D)
a decrease in the supply of U.S. dollars and an increase in the exchange rate
of Swiss francs per dollar.

40)
A decrease in Swiss interest rates will cause
A)
an increase in the demand for U.S. dollars and an increase in the exchange rate
of Swiss francs per dollar.
B)
a decrease in the demand for U.S. dollars and a decrease in the exchange rate
of Swiss francs per dollar.
C)
an increase in the supply of U.S. dollars and a decrease in the exchange rate
of Swiss francs per dollar.
D)
a decrease in the supply of U.S. dollars and an increase in the exchange rate
of Swiss francs per dollar.

41)
An increase in Swiss prices will cause
A)
an increase in the demand for U.S. dollars and an increase in the exchange rate
of Swiss francs per dollar.
B)
a decrease in the demand for U.S. dollars and a decrease in the exchange rate
of Swiss francs per dollar.
C)
an increase in the supply of U.S. dollars and a decrease in the exchange rate
of Swiss francs per dollar.
D)
a decrease in the supply of U.S. dollars and an increase in the exchange rate
of Swiss francs per dollar.

42)
A decrease in Swiss prices will cause
A)
an increase in the demand for U.S. dollars and an increase in the exchange rate
of Swiss francs per dollar.
B)
a decrease in the demand for U.S. dollars and a decrease in the exchange rate
of Swiss francs per dollar.
C)
an increase in the supply of U.S. dollars and a decrease in the exchange rate
of Swiss francs per dollar.
D)
a decrease in the supply of U.S. dollars and an increase in the exchange rate
of Swiss francs per dollar.

Get a 20 % discount on an order above $ 40
Use the following coupon code:
LOBSTER
Positive SSL