If interest rates in the United States rise,
A) the value of the dollar will rise as the foreign investors increase their holdings of U.S. investments.
B) the value of the dollar will fall as foreign investors increase their holdings of U.S. investments.
C) the value of the dollar will rise as foreign investors sell their U.S. investments.
D) the value of the dollar will fall as foreign investors sell their U.S. investments.
A
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Danielle Ocean pays for monthly pool maintenance for her home swimming pool. Last week the owner of the pool service informed Danielle that he will have to raise his monthly service fee because of increases in the price of pool chemicals
How is the market for pool maintenance services affected by this? A) There is a decrease in the demand for pool maintenance services. B) There is a decrease in the quantity of pool maintenance services supplied. C) There is an increase in the supply of pool maintenance services. D) There is a decrease in the supply of pool maintenance services.
For a U.S. economic agent, the expected return on U.S. dollars includes ________
A) the interest rate on dollar-denominated bank deposits B) the expected value of the dollar relative to some other currency C) the rate of exchange between the dollar and some other currency D) the expected return on some other currency
Wealth refers to
A. A flow of money over time. B. The way personal income is divided among households. C. The market value of assets people own. D. The purchasing power this year.
Scott and Tom have dinner together at a new restaurant, and they discover that the portions are huge but taking home leftovers is not allowed. When both decide they are full, Scott forces himself to finish the rest of the food on his plate even though he doesn't really want to, while Tom asks the waiter to remove his plate while it still contains some food. How would an economist describe this behavior?
A. Both Tom and Scott acted rationally. B. Tom acted rationally, maximizing his utility. C. Scott acted rationally, because the food otherwise would have been thrown away. D. Both Tom and Scott acted irrationally.