Reference no: EM131067861

1. Suppose GDP increases in the United States, but it doesn't increase in other nations. As a result of this change, which of the following is true?

I. The demand for the U.S. dollar will increase.

II. The demand for the U.S. dollar will decrease.

III. U.S. exports will increase as a result of the changing value of the U.S. dollar.

IV. U.S. exports will decrease as a result of the changing value of the U.S. dollar.

I only. II and III only. I and IV only. II and IV only. I and II only.

2. If actions of the Chinese government caused a shortage of domestic currency, then the exchange rate would be above the market equilibrium and U.S. dollars per Chinese yuan will tend to rise. below the market equilibrium and U.S. dollars per Chinese yuan will tend to rise. below the market equilibrium and U.S. dollars per Chinese yuan will tend to fall. above the market equilibrium and U.S. dollars per Chinese yuan will tend to fall. below the market equilibrium and Chinese yuan per U.S. dollars will tend to rise.