What will happen if speculators believe that the relative price of the U.S. dollar is going to rise?
a. They will buy more euros causing the U.S. dollar to appreciate.
b. They will buy more U.S. dollars causing the U.S. dollar to appreciate in value.
c. Those holding U.S. dollars will convert them to foreign currencies.
d. They will buy fewer U.S. dollars causing the U.S. dollar to appreciate in value.
b. They will buy more U.S. dollars causing the U.S. dollar to appreciate in value.
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What are the factors that contribute to productivity growth in the market economy and which of them is considered most important?
A business that discovers a decline in profit can best solve the problem by
a. firing any workers who were hired since the business had maximum profits b. hiring more workers until the former level of profit is reached c. creating a production costs schedule to find the point when increasing returns change to diminishing returns d. creating a production costs and revenues schedule to find the profit-maximizing output
If a bank has reserves of $150 million and demand deposits of $1.2 billion, how much are the bank's (a) required reserves and (b) excess reserves?
What will be an ideal response?
In the late 1980s, the U.S. money supply
A. grew at an increasing rate. B. grew at a steady rate. C. grew at a decreasing rate. D. did not grow.