Given Pus and Yus, when the money supply rises, the dollar interest rate declines and the dollar appreciates against the euro.
举一反三
- Given Pus and Yus, An increase in the European money supply causes the euro to depreciate against the dollar, but it does not disturb the U.S. money market equilibrium.
- If the dollar interest rate is 10 percent, the euro interest rate is 6 percent, then an investor should be indifferent between dollars and euros if the expected dollar depreciation against the euro is 4 percent.
- Which one of the following statements is the MOST accurate? A: A rise in the interest rate offered by dollar deposits causes the dollar to appreciate. B: A rise in the interest rate offered by dollar deposits causes the dollar to depreciate. C: A rise in the interest rate offered by dollar deposits does not affect the U.S. dollar. D: For a given euro interest rate and constant forward exchange rate, a rise in the interest rate offered by dollar deposits causes the dollar to appreciate.
- The bid price for a bank is 1.2400 US dollar per euro; and the ask price is 1.2408 dollar per euro. The spread would be __________.
- When the exchange rate changes from 1.0 euros to the dollar to 1.2 euros to the dollar, then the euro has _________ and the dollar has _________. A: appreciated; appreciated B: depreciated; appreciated C: appreciated; depreciated D: depreciated; depreciated