Exchange rates：练习题

• a.

  UK tourism becomes cheaper for visitors from the USA

• b.

  The price of imported raw materials into the UK increases

• c.

  The price of UK exports increases for foreign buyers

• d.

  The demand for UK exports is likely to rise

• a.

  The current account balance will improve because UK exports become cheaper and more competitive abroad.

• b.

  The current account balance will worsen because the value of the Pound has appreciated.

• c.

  The current account balance will worsen because the cost of importing raw materials will decrease.

• d.

  The current account balance will remain unchanged because the volume of trade is fixed.

• a.

  The demand for the Yuan will increase, causing the Pound to devalue against the Yuan.

• b.

  The demand for the Pound will shift to the right, causing the exchange rate to appreciate.

• c.

  The supply of the Pound will shift to the right, causing the exchange rate to depreciate.

• d.

  The supply of the Pound will shift to the left, causing the exchange rate to remain stable.

• a.

  The price of exports falls in foreign currency, the price of imports rises in domestic currency, and the trade balance improves.

• b.

  The price of exports rises in foreign currency, the price of imports falls in domestic currency, and the trade balance worsens.

• c.

  Domestic consumers gain purchasing power for foreign goods, while domestic firms find it harder to sell abroad.

• d.

  Inflationary pressure decreases because the cost of imported raw materials for domestic firms becomes cheaper.

• a.The demand for Pounds shifts to the left, causing the Pound to depreciate
• b.The supply of Pounds shifts to the left, causing the Pound to appreciate
• c.The demand for Pounds shifts to the right, causing the Pound to appreciate
• d.The supply of Pounds shifts to the right, causing the Pound to depreciate

先自己写一遍答案，再对照解题步骤。