Considering the foreign exchange market, specifically the market for U.S. dollars and British pounds, who is supplying dollars in this market?
What will be an ideal response?
The supply of U.S. dollars on the foreign exchange market in this case is primarily people in the U.S. who desire to buy British goods and services and/or British financial assets. In order to purchase these goods the holders of dollars need to exchange their dollars for pounds.
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If, at some level of output, total planned real expenditures are less than real Gross Domestic Product (GDP)
A) real GDP will either fall or remain unchanged, depending on the MPC. B) real GDP will rise. C) unplanned inventories will increase and real GDP will fall. D) real GDP remains unchanged.
Payroll taxes are paid on
A) earned income. B) investment income. C) inheritances. D) all of the above
If the marginal cost of production is $10, the elasticity of demand for group 1 is -1.5, the elasticity of demand for group 2 is -2.5, and the price paid by group 1 is $15, the price for group 2 is
A) $8.33. B) $27. C) $15. D) Impossible to tell.
Automatic stabilizers act to moderate business cycles primarily through the personal income and consumption channels
a. True b. False Indicate whether the statement is true or false