Author Question: Suppose a U.S.-made machine costs 500 and the exchange rate is 100 yen = 1 . Now the exchange rate ... (Read 54 times)

ashley

  • Hero Member
  • *****
  • Posts: 584
Suppose a U.S.-made machine costs 500 and the exchange rate is 100 yen = 1 . Now the exchange rate changes to 90 yen = 1 . Then the:
 a. machine would now cost more dollars.
  b. machine would now cost the Japanese citizen less yen.
  c. machine would now cost less dollars.
  d. machine would now cost the Japanese citizen more yen.
  e. yen has depreciated in value.

Question 2

A lower interest rate makes more investment projects profitable, meaning that:
 a. there is a direct relationship between the rate of interest and the quantity of investment spending.
  b. there is an inverse relationship between the rate of interest and the quantity of investment spending.
  c. there is no relationship between the rate of interest and the quantity of investment spending.
  d. the demand curve for investment spending is horizontal.
  e. the demand curve for investment spending is vertical.



xoxo123

  • Sr. Member
  • ****
  • Posts: 335
Answer to Question 1

b

Answer to Question 2

b



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

For a complete list of videos, visit our video library