In the foreign exchange market, an increase in the world demand for U.S. exports shifts the
A) demand curve for U.S. dollars rightward.
B) demand curve for U.S. dollars leftward.
C) supply curve for U.S. dollars leftward.
D) supply curve for U.S. dollars rightward.
A
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In a two-period model, holding everything else constant, an increase in government spending
A) unambiguously increases the current account surplus. B) unambiguously decreases the current account surplus. C) has an uncertain effect on the current account surplus. D) has no effect on the current account surplus.
Assuming the Federal Reserve is targeting the interest rate, a decrease in money demand will
a. shift the LM schedule to the right. b. shift the LM schedule to the left. c. shift the IS schedule to the right. d. not shift the LM schedule. e. none of the above.
For a firm with market power, advertising expenditures affect all of the following except which one?
A) total cost B) demand curve C) marginal cost D) marginal revenue
Unemployment benefits tend to be higher in Europe and are offered for longer periods than in the United States
a. True b. False