Please solve all as soon as possible Thank you 18 Assume tha

18. Assume that Swiss investors have francs avai view U.S. and British interest rates as equally attractive. Now assume that U.S. interest rates A) the Swiss demand for dollars to decrease and the dollar will depreciate against the pound increase while British interest rates stay the same. This would likely cause C) the Swis demand for dollars to increase and the dollar will appreciate against the Swiss D) the Swiss demand for dollars to decrease and the dolar will appreciate against the pound 19. If inflation in New Zealand suddenly increased while U.S. inflation stayed the same, there A) an inward shift in the demand schedule for NZS and an outward shift in the supply B) an outward shift in the demand schodule for NZS and an inward shift in the supply C) an outward shift in the demand schedule for NZS and an outward shift in the supply D) an inward shift in the demand schedule for NZS and an inward shift in the supply schedule franc franc would be schedule for NZS schedule for NZS schedule for NZS. for NZS 20. If the U.S. and Japan engage in substantial financial flows but little trade directly influence their exchange rate the most. If the U.S. and Switzerland engage in much trade but little financial flows, A) interest rate differentials; interest rate differentials B) inflation and interest rate differentials interest rate differentials C) income and interest rate differentials; inflation differentials D) interest rate differentials; inflation and income differentials E) inflation and income differentials; interest rate differentials directly influence their exchange rate the most 21. If a country experiences high inflation relative to the U.S., its exports to the U.S. should and there ispressure on its currency\'s its imports should equilibrium value A) decrease; increase; upward B) decrease; decrease; upward C) increase; decrease; downward D) decrease; increase; downward E) increase; decrease: upward

Solution

18.option c is correct, this will increase Swiss demand for dollar and dollar will appreciate against Swiss franc

19. Option a is correct,an inward shift is demand of nz dollar and outward shift in supply of nz dollars

20 option d is correct, interest rate differential and inflation and income diffferential

21 options d is correct