If Americans expect the dollar price of the British pound to rise, this expectation will cause
a. a rightward movement along the U.S. demand curve for pounds
b. a leftward shift of the U.S. demand curve for pounds
c. a rightward shift the U.S. demand curve for pounds
d. a leftward movement along the U.S. demand curve for pounds
e. no change in the U.S. demand curve for pounds
C
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To avoid maturity mismatches, most financial intermediaries tend to
A) have assets whose maturities on average exceed the maturities of their liabilities. B) have assets whose maturities on average are less than the maturities of their liabilities. C) have assets whose maturities on average mirror the maturities of their liabilities. D) hold primarily real assets.
Which of the following statements correctly characterizes the problem with comparing production outcomes that are stocks and flows?
A) Labor usage is always a flow, which makes it difficult to compare with stock inputs like capital. B) Most capital inputs are stocks, but the returns on these investments (profits) occur as a flow. C) Most capital inputs are flows, but economists treat these expenditures as stocks by using the opportunity or economic costs associated with these inputs. D) Business returns or profits may be equivalently viewed as stocks or flows, which makes it difficult to compare the returns with the input expenditures.
Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a $1,000 cash deposit, then, excluding the $1,000 initial deposit, the banking system can increase the money supply by:
A. $900. B. $910. C. $1,000. D. $9,000.
If the aggregate supply curve is flat,
A. contractionary fiscal or monetary policy will reduce inflation with little effect on real GDP. B. contractionary fiscal or monetary policy will cause significantly less inflation. C. expansionary fiscal or monetary policy will add significantly to real GDP will little effect on inflation. D. expansionary fiscal or monetary policy will add little to real GDP but will increase inflation significantly.