If the Fed wants to depreciate the U.S. dollar against the British pound, it will ________.
A: sell foreign exchange
B: decrease the money supply
C: sell British pounds
D: sell U.S. dollars
A: sell foreign exchange
B: decrease the money supply
C: sell British pounds
D: sell U.S. dollars
举一反三
- If the price of British pounds in terms of the U.S. dollars is $1.80 per pound, then the price of U.S. dollars in terms of British pounds is:
- Consider that Britain is trying to maintain a fixed exchange rate with respect to the U.S. dollar. However, the present situation in the foreign exchange market is conducive for the British pound to depreciate with respect to the U.S. dollar. If the British government uses sterilized intervention in the foreign exchange market, then:
- If the U.S. dollar and British pound have a flexible exchange rate, and the U.S. dollar changes so that one needs more dollars to buy one pound, the currency has A: depreciated. B: appreciated. C: devalued. D: revalued.
- Which of the following is included in the supply of U.S. dollars in the market for foreign-currency exchange in the open-economy macroeconomic model? A: a U.S. bank loans dollars to Tom to buy a U.S. made motorcycle B: a U.S. tire maker wants to build a new factory in China C: a U.S. company wants to import goods to sell in its retail stores D: All of the above are correct
- An appreciation in the value of the U.S. dollar against the British pound would tend to: A: Discourage the British from buying American goods B: Discourage Americans from buying British goods C: Increase the number of dollars that could be bought with a pound D: Discourage U.S. tourists from traveling to Britain