inflation in the United Kingdom is 3%, relative purchasing power
would predict that( )
A: the pound will appreciate relative to the dollar.
B: the pound will depreciate relative to the dollar.
C: both the dollar and the pound will depreciate due to inflation.
D: both the dollar and the pound will appreciate due to inflation.
举一反三
- The exchange rate between dollar and pound change from $2/£1 to<br/>$1/£1 implies( ) A: an appreciation of the dollar B: a<br/>depreciation of the dollar C: a<br/>devaluation of the dollar D: an exchange rate overshooting
- Low real interest rates in the United States tend to: A: Decrease the demand for dollars, causing the dollar to depreciate B: Decrease the demand for dollars, causing the dollar to appreciate C: Increase the demand for dollars, causing the dollar to depreciate D: Increase the demand for dollars, causing the dollar to appreciate
- If over the next year the inflation rate in the euro area is higher than the inflation rate in Japan, then the euro should depreciate relative to the Japanese yen.
- Your U.S firm has an accounts payable denominated in UK pounds due in 6 months. Toprotect yourself against unexpected changes in the dollar/pound exchange rate you shouldbuy a pound put option.
- If the U.S. dollar and British pound have a flexible exchange rate, and the U.S. dollar changes so that one needs more dollars to buy one pound, the currency has A: depreciated. B: appreciated. C: devalued. D: revalued.
内容
- 0
If the UK had a economic downturn and China had a economic prosperity, the demand for pound would , the supply of pound would , making pound in a free market. A: increase, decrease, appreciate B: increase, decrease, depreciate C: decrease, increase,appreciate D: decrease,increase,depreciate
- 1
The Fed operationalizes its goals by focusing on: A: core inflation and the output gap. B: expected inflation and U.S. dollar exchange rates. C: food and energy prices and the growth rate of real GDP.
- 2
When the value of the dollar changes from 0.5 pounds to 0.75 pounds, then the pound has appreciated and the dollar has depreciated.
- 3
A decrease in the expected rate of inflation will _________ the expected return on bonds relative to that on _________ assets.
- 4
The currency of the UK is _____. A: Pound Sterling B: Dollar C: Franc D: Euro