Author Question: If the dollar price of one South African rand (ZAR) increases from 0.076 in 1999 to 0.083 in 2003, ... (Read 59 times)

APUS57 · **on:** Jun 30, 2018

If the dollar price of one South African rand (ZAR) increases from 0.076 in 1999 to 0.083 in 2003, we can say that the reciprocal exchange rate moved from:
a. 1 = ZAR 13.2 in 1999 to 1 = ZAR 12.0 in 2003.
b. 1 = ZAR 12.0 in 1999 to 1 = ZAR 13.2 in 2003.
c. 1 = ZAR 0.076 in 1999 to 1 = ZAR 0.083 in 2003.
d. ZAR 1 = 0.083 in 1999 to ZAR 1 = 0.076 in 2003.
e. 1 = ZAR 176 in 1999 to 1 = ZAR 183 in 2003.

Question 2

Which of the following will increase the demand for U.S. products in the international market?
a. An increase in the average price level in the U.S.
b. A depreciation of foreign currency
c. A depreciation of the U.S. dollar
d. A tariff imposed by the U.S. on imported goods
e. A rise in the domestic demand for goods and services