Define the term overvalu 32)zv7:g ekssq1syz ted currency.

  

Year	Official Exchange Rate (peso per euro)
2020	56.19
2023	60.22

A Filipino firm pays its German-based consultant 200 000 euros every year. Using the information in the table above, what is the increase in the cost of the payment between 2020 and 2023?

  A country with a pers p:5s tnb*x4kdistent current account surplus will have the following consequex:s5*p kbndt 4nces except

  What will be the impact of a current account deficit on the country’s cu(murli.a+ v7vmebv nof jw1 -a85n1( rrrency under a floating exchange rate systemmb o(mve(n f5+ w7.arv-r8ij1 vna1ul?

  

	US$ (millions)
Imports of services	500
Exports of goods	450
Net capital transfers	45
Imports of goods	120

Calculate the balance on the current account from the table above.

  Depreciation of currency will help improve the balance ohsp 3jjy:mc2 :sx8ykmy),p 8 hf trade (BOT) if:

	Price elasticity of demand (exports)	Price elasticity of demand (imports)
A.	0.6	0.3
B.	0.5	0.6
C.	0.3	0.7
D.	0.5	0.5

  Which of the following statements is not consistent with the likely effectqkbido6 vxm(/:;q i wip5cb9: of an increase in interest rates in Malays(bmi;io/6p 9 id5 xqcq:wk: vbia?

  Which one of the following is nol skn)m, hz k6si51j:gt included in the current account of the balance of payments (, 5ns:l) kk6 gihmz1jsBOP)?

  Which of the following is an expenditure-kp gx*b*uvstm i.p x(1m;j4r4switching policy to correct a persistent current rm t*14b.sp(px4ugvj* ximk;account deficit?

I. Imposition of tariffs
II. Revaluation of currency
III. Increasing interest rates
IV. Granting subsidies to export-oriented industries

  Assume a country has a trade deficit and the sum of the price elauwmdp)- xsr2d .qer)pz.t/d3 sticities of demand for exports and imports is less than 1. What will be the impact of currency depreciation on the country's )zrs)rd2-d/ 3 t.pewq um.pd xtrade balance?

  Select which of the following would not be consisti p bc:tot( 9y6j7t5j z(u;zvhent with a trade deficit:

  Which of the following represents an invisible ex qdul xt/hles246)2nfport in the balance of payments (BOP) of the Un 6llhtd)qx 2uesf2 4/S?

  Select from the table below the appropriate transmission mechanism of aqr*lm y,cpxz7gjvmm 2i:0/ 8o contractionary monetary policy which involves rai2c yimqojzl:v 7prmm/0*g8x,sing interest rates to achieve an external balance.

	Aggregate Demand	Real GDP	Net Exports
A.	Decreases	Decreases	Increase
B.	Increases	Increases	Decrease
C.	Decreases	Decreases	Decrease
D.	Increases	Increases	Increase

  

Year	Philippine Peso per Euro
2020	56.19
2023	60.22

Using the information from the table above, how may the change in the exchange rate between 2020 and 2023 affect the inflation rate in the Philippines from the choices below.

I. Increased net exports will increase aggregate demand, causing demand-pull inflation.
II. Higher costs of imported intermediate goods, machinery, and equipment will cause short-run aggregate supply to decrease, leading to cost-push inflation.
III. Aggregate demand will fall, leading to deflation.
IV. Aggregate supply will increase, leading to deflation.

  
Given the diagram above, suppose the equilibrium exchange rate for the Canadian dollar (CAD) is at $e_1$. If the Canadian government wishes to fix the exchange rate at $e_2$, it can employ all of the following policies except:

  Devaluation would most likely aid in achieving which of the following e wzvchg z5dw1q30.9g policy obje.ze0vqcwg9dg13 h w5z ctives?

  Which of the following is the most likely response for a country with a fixe6k)ga 4fpjbx9 b8z*rod exchange rate experiencing a sharp fall in f6 8x)zob *4aprgj9bk net exports?

  A country has a fixed exchange rate with the UK poanz:t-g i p3.+ ziq -,yyv+fydund where one unit of its currency pvg: dz+y fa,-nzi+q t.-i3yyis worth £0.80
£0.80. Which of the combinations of actions by the central bank would be taken if that value changed to £1?

	Own currency	UK pounds
A	Buy	Buy
B	Buy	Sell
C	Sell	Sell
D	Sell	Buy

  
Which of the following would cause the shifts from point $x$to point $z$in the above diagram depicting supply and demand for US$on the foreign exchange market?

  Which of the following is not a reason to adopt a fc5 +y*0 7v wyiw b:vmk*tjnsm)loating exchange rate?

  Which of the following policies is consistent witga5 xg kjv5;,n/)aa yes99 srch its objective?

	Policy	Objective
A.	Devaluation	Reducing inflation
B.	Revaluation	Reducing unemployment
C.	Devaluation	Reduce a current account surplus
D.	Revaluation	Improve living standards