Exchange-Rate Determination Mcqs


Q.  Assume that a Big Mac hamburger cost $3 in the United States 2 pesos in Mexico The implied purchasing power parity exchange rate between the peso and the dollar is ?

a. 0.67 pesos = $1
b. 0.8 pesos = $1
c. 1.25 pesos = $1
d. 1.67 pesos = $1


ANSWER: See Answer
 
No explanation is available for this question!
MCQs:  Suppose that the purchasing power parity estimate of the dollar/euro exchange rate is $1.30 per euro, and the current spot rate is $1.3 8 per euro. Comparing these two exchange rates from a long-run viewpoint you would ?
Category: Economics Mcqs,   Published by: teswesm
MCQs:  Suppose that rising U.S income leads to higher sales and profits in the United States This would likely result in ?
Category: Economics Mcqs,   Published by: teswesm
MCQs:  Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium economic theory suggests that the nation’s balance of payments would move into a surplus position if there occurred in the nation a (an) ?
Category: Economics Mcqs,   Published by: teswesm
MCQs:  Which example of market expectations causes the dollar to depreciate against the yen – expectation that the U.S economy will have ?
Category: Economics Mcqs,   Published by: teswesm
MCQs:  Under a system of floating exchange rates relatively high productivity and low inflation rates in the United States results in a (an) ?
Category: Economics Mcqs,   Published by: teswesm
MCQs:  Under a system of floating exchange rates relatively low productivity and high inflation rates in the United States results in a (an) ?
Category: Economics Mcqs,   Published by: teswesm
MCQs:  Given a system of floating exchange rates rising income in the United States would trigger a (an) ?
Category: Economics Mcqs,   Published by: teswesm
MCQs:  For the United States suppose the annual interest rate on government securities equals 8 percent while the annual inflation rate equals 4 percent, For Switzerland the annual interest rate on government securities equal 10 percent while the annual inflation rate equals 7 percent the above variables would cause investment funds to flow from ?
Category: Economics Mcqs,   Published by: teswesm
MCQs:  The exchange value of the U.S dollar is primarily determined by ?
Category: Economics Mcqs,   Published by: teswesm
MCQs:  If Canada runs a balance of payments surplus and exchange rates are floating ?
Category: Economics Mcqs,   Published by: teswesm
MCQs:  The appreciation in the value of the dollar in the early 1980s is explained by all of the following except ?
Category: Economics Mcqs,   Published by: teswesm
MCQs:  When the price of foreign currency (i.e the exchange rate) is below the equilibrium level ?
Category: Economics Mcqs,   Published by: teswesm
MCQs:  A primary reason that explains the appreciation in the value of U.S dollar would be ?
Category: Economics Mcqs,   Published by: teswesm
MCQs:  In the presences of purchasing power parity, if one-dollar exchanges for 2 British pounds and if a DVD player costs $400 in the United States then in Britain the DVD player should cost ?
Category: Economics Mcqs,   Published by: teswesm
MCQs:  Relatively high real interest rates in the United States tend to ?
Category: Economics Mcqs,   Published by: teswesm
MCQs:  If a Big Mac hamburger sells for the same dollar value in New York as in London then ?
Category: Economics Mcqs,   Published by: teswesm
MCQs:  The relationship between the exchange rate and the prices of tradable goods is known as the ?
Category: Economics Mcqs,   Published by: teswesm
MCQs:  If the income elasticity of demand for a good is negative it must be ?
Category: Economics Mcqs,   Published by: teswesm
MCQs:  If there is excess capacity in a production facility it is likely that the firm’s supply curve is ?
Category: Economics Mcqs,   Published by: teswesm
MCQs:  Technological improvements in agriculture that shift the supply of agricultural commodities to the right tend to ?
Category: Economics Mcqs,   Published by: teswesm