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Which of the following statements is true?
A) If the expected future spot exchange rate value of the foreign currency decreases, there will be international financial repositioning toward foreign-currency assets, thereby causing the domestic currency to depreciate.
B) If the domestic interest rate rises, there will be international financial repositioning toward domestic-currency assets, thereby causing the domestic currency to appreciate.
C) If foreign interest rates increase with, the domestic interest rate remaining unchanged, there will be international financial repositioning toward domestic-currency assets and the domestic currency will appreciate.
D) If the expected future spot dollar per euro exchange rate increases, there will be international financial repositioning toward the dollar-denominated assets, thereby causing the euro to depreciate.
Calculate the trade balance among the U.S. also China for the period. Analysis by using appropriate examples.
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In 2012, Peter Pan’s Pizza Pizzeria produced and sold 10,000 pizzas at a price of $8 each. In 2013,Peter Pan’s Pizza Pizzeria produced and sold 12,000 pizzas at a price of $9 each. How much did Peter Pan’s Pizza Pizzeria contribute to nominal GDP (in..
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