________ in the domestic interest rate causes the demand for domestic assets to shift to the ________ and the domestic currency to appreciate, everything else held constant
A) An increase; right
B) An increase; left
C) A decrease; right
D) A decrease; left
A
You might also like to view...
Actual investment spending does not include
a. spending on consumer durable goods. b. spending on new capital equipment. c. spending on new houses. d. changes in inventories.
Yesterday, the dollar was trading in the foreign exchange market at 1.10 euros per dollar. Today, the dollar is trading at 1.20 euros per dollar
The dollar has ________ and a possible reason for the change is ________ in the expected future exchange rate. A) appreciated; because there has been no change B) depreciated; a decrease C) appreciated; a decrease D) appreciated; an increase E) depreciated; an increase
A share of stock expected to pay an annual dividend of $12 forever has a market price of __________ when the Treasury bond rate is 6.5% and the stock has a risk premium of 4.5%
A) $109.09 B) $184.62 C) $266.67 D) $600
Which of the following helps determine the demand side of the market?
a. consumers who purchase goods b. companies that sell services c. government officials who enforce regulations d. resource owners who sell raw materials