An appreciation of the dollar against all currencies in the foreign exchange market would result in all of the following, except:

a. a decrease in the dollar prices paid by U.S. importers.
b. an increase in the cost of vacations in Florida for Japanese tourists.
c. foreign holidays for U.S. residents to be less expensive.
d. an increase in the foreign currency prices paid for U.S. exports.
e. an increase in the demand for U.S. exports.

e

Economics

You might also like to view...

An economics professor has devised an interesting game to test the understanding of his students. He randomly selects two students from his class and gives a $50 bill to one of them

He then asks him what percentage of $50 he would give to his classmate. The first student can choose any percentage he wishes, while the second student can choose whether or not to accept the offer. If the second student does not accept the offer, the professor will take the bill back but if he accepts the offer, the money will be divided in the ratio decided by the first student. a) What is the likely outcome of this game if both the students value more money to less? b) What is the likely outcome of this game if the second student values fairness?

Economics

The German government carries out an official foreign exchange intervention in which it uses dollars held in an American bank to buy French currency from its citizens. How is this accounted for in the balance of payments?

A) current account, French good export B) current account, German good import C) financial account, French asset export D) financial account, German asset export E) financial account, German asset import

Economics