Post by: nautica902 on Mar 16, 2019
Question 1
Figure 18-3
Refer to Figure 18-3. Consider the market for U.S. dollars against the Japanese yen shown above. An event which could have caused the changes shown in the graph would be
◦ an increase in U.S. real income.
◦ speculators expect the dollar to depreciate in value in the near future.
◦ an economic expansion in the United States.
◦ a decrease in Japanese interest rates.
Question 2
Table 18-3
Refer to Table 18-3. Given the following exchange rates in the above table, what are the exchange rates stated as U.S. dollars per Danish krone and U.S. dollars per EU euro respectively?
◦ 0.20 dollars per krone and 1.43 dollars per euro
◦ 2.00 dollars per krone and 7.14 dollars per euro
◦ 0.02 dollars per krone and 0.70 dollars per euro
◦ 0.05 dollars per krone and 1.30 dollars per euro
Post by: diesoon on Mar 16, 2019
Answer 1
a decrease in Japanese interest rates.Answer 2
0.20 dollars per krone and 1.43 dollars per euroPost by: nautica902 on Mar 16, 2019
Post by: diesoon on Mar 16, 2019