If the interest rate rises in the United States relative to other nations, then in the foreign exchange market the demand for dollars ________ and the supply of dollars ________
A) does not change; does not change
B) increases; increases
C) increases; decreases
D) decreases; decreases
E) decreases; increases
C
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If the current account is in surplus and the capital account is zero, then
A) net exports must be positive. B) the balance of payments must be in surplus. C) the financial account must be in deficit. D) there is a capital inflow.
Quinn's income to spend each month on two normal goods, bowling or eating out, is $100. It costs $10 to bowl for the night, and it costs $20 for Quinn to eat at a restaurant. Quinn currently consumes four nights of bowling and three meals at a restaurant. If the price of bowling increased to $15, the income effect would predict:
A. Quinn would consume more of each good. B. Quinn would consume less bowling and more meals out. C. Quinn would consume less of each good. D. Quinn would consume more bowling and less meals out.
Describe the advantages that a negative income tax has over other programs that have the same purpose
Exhibit 6-2 Total utility for hamburgers, fries, and Cokes Total Utilityfrom Hamburgers Total Utilityfrom Fries Total Utilityfrom Cokes 1 hamburger (100 utils) 1 order of fries (30 utils) 1 Coke (40 utils) 2 hamburgers (180 utils) 2 orders of fries (50 utils) 2 Cokes (60 utils) 3 hamburgers (240 utils) 3 orders of fries (60 utils) 3 Cokes (70 utils) In Exhibit 6-2, assume that the price of hamburgers is $2 each, fries cost 50 cents each, and Cokes cost $1 each. Suppose the consumer has $6 to spend on hamburgers, fries, and Cokes. Which of the following meals gives the consumer the most utility?
A. 3 hamburgers, no fries, and no Cokes. B. 2 hamburgers, no fries, and 2 Cokes. C. 2 hamburgers, 2 orders of fries and 1 Coke. D. 1 hamburger, 2 orders of fries, and 3 Cokes.