Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?
A. depreciation
B. appreciation
C. fall
D. devaluation
Related Questions on Macroeconomic Issues & Analysis Mcqs
All of the following are benefits of the single market except ?
A. it allows countries to exploit their comparative advantage, more fully
B. firm could more readily exploit
C. economies of scal
D. it intensified competition
E. it is easier to book holidays in member countries
A. a nominal exchange rate, floated
B. a real exchange rate, pegged
C. a purchasing power parity, pegged
D. a real exchange rate, floated
A. appreciate
B. depreciate
C. revalue
D. be in short supply
A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy ?
A. enhances
B. undermines
C. encourages
D. facilitates
A. increased
B. unaffected
C. reduced
D. None of these