Chapter 18 International Trade and Finance

| November 9, 2018

23)
Referring to Figure 18.2, Mexican goods will become more expensive in the
United States if the exchange rate goes from ________ to ________ pesos to the
dollar.
A)
12; 11
B)
12; 13
C)
11; 13
D)
10; 13

24)
Referring to Figure 18.2, Mexican goods will become cheaper in the United
States if the exchange rate goes from ________ to ________ pesos to the dollar.
A)
12; 11
B)
12; 13
C)
13; 11
D)
13; 10

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Figure 18.3

25)
Referring to Figure 18.3, a depreciation of the dollar is represented by a
movement from point
A)
c to d.
B)
b to a.
C)
a to c.
D)
c to a.

26)
Referring to Figure 18.3, an appreciation of the dollar is represented by a
movement from point
A)
a to d.
B)
c to d.
C)
a to c.
D)
b to c.

27)
Referring to Figure 18.3, the effect of an increase in U.S. interest rates is
represented by a movement from point
A)
a to d.
B)
c to b.
C)
a to b.
D)
d to c.

28)
Referring to Figure 18.3, the effect of a decrease in U.S. prices is
represented by a movement from point
A)
d to a.
B)
b to c.
C)
a to d.
D)
a to b.

29)
Referring to Figure 18.3, the effect of a decrease in U.S. interest rates is
represented by a movement from point
A)
d to a.
B)
c to b.
C)
c to d.
D)
b to c.

30)
Referring to Figure 18.3, the effect of an increase in U.S. prices is
represented by a movement from point
A)
c to b.
B)
b to a.
C)
d to a.
D)
a to d.

31)
Referring to Figure 18.3, the effect of an increase in Japanese interest rates
is represented by a movement from point
A)
c to d.
B)
b to a.
C)
d to c.
D)
d to a.

32)
Referring to Figure 18.3, the effect of a decrease in Japanese prices is
represented by a movement from point
A)
d to a.
B)
c to b.
C)
c to d.
D)
d to c.

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