The U.S. Secretary of the Treasury met with the Japanese Finance Minister to discuss possible cuts in the Japanese discount rate. The likely outcome of currency speculation in response to this news is that

A. the dollar will depreciate.
B. the dollar will appreciate.
C. the yen will appreciate.
D. both the dollar and yen will appreciate.


Answer: B

Economics

You might also like to view...

The definition of efficiency implies that production is carried out on the production possibilities frontier.

Answer the following statement true (T) or false (F)

Economics

A contractionary monetary policy can reduce real GDP if expectations are formed rationally and monetary policy is

A) combined with expansionary fiscal policy. B) carried out in total secrecy. C) publicly announced and credible. D) combined with contractionary fiscal policy.

Economics

Applying supply and demand analysis, other factors held constant, the steeper the supply curve (more inelastic), the larger the burden of a sales tax that is borne by the sellers

a. True b. False Indicate whether the statement is true or false

Economics

Protectionism saves jobs in both the specific industry being protected, as well as in other unprotected industries

a. True b. False Indicate whether the statement is true or false

Economics