How does a decrease in the federal budget deficit affect the demand for dollars and the supply of dollars on the foreign exchange market?
A) The demand for dollars falls, and the supply of dollars falls.
B) The demand for dollars rises, and the supply of dollars falls.
C) The demand for dollars rises, and the supply of dollars rises.
D) The demand for dollars falls, and the supply of dollars rises.
D
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The expected benefit of investment equals:
A. the real interest rate. B. private saving. C. the price of the capital good. D. the value of the marginal product of capital.
The real bills doctrine was the guiding principle for the conduct of monetary policy during the
A) 1910s. B) 1940s. C) 1950s. D) 1960s.
For a monopoly firm, which of the following equalities is always true?
a. price = marginal revenue b. price = average revenue c. price = total revenue d. marginal revenue = marginal cost
According to the permanent income hypothesis _________ and _________ have negative savings.
Fill in the blank(s) with the appropriate word(s).