Economic MCQ Questions

When a currency crisis occurs, there is a(n) sharp __________ in the supply of the currency and a(n) sharp __________ in the demand for that currency.
1)increase; increase
2)increase; decrease // This is my answer
3)increase; no change
4)decrease; decrease
5)decrease; increase

If the U.S. inflation rate is 3 percent annually and the Japanese inflation rate is 1 percent annually, by what percent would the dollar price of the yen change annually according to purchasing power parity theory?
1)Depreciate by 1 percent
2)Appreciate by 1 percent
3)Appreciate by 2 percent
4)Depreciate by 2 percent
5)Appreciate by 3 percent

Not so sure about this

Expansionary monetary policy is strengthened in an open economy. What about expansionary fiscal policy?
1)Expansionary fiscal policy is strengthened, because the policy reduces the interest rate, which leads to currency depreciation, which increases net exports.
2)Expansionary fiscal policy is weakened, because the policy increases the interest rate, which leads to currency appreciation, which reduces net exports. // This is my answer
3)Expansionary fiscal policy is strengthened, because the policy increases the interest rate, which leads to currency depreciation, which increasee net exports.
4)Expansionary fiscal policy is unaffected in an open economy.