An increase in the Japanese interest rate will ________ the demand for dollars and lead the dollar to ________
A) increase; appreciate
B) increase; depreciate
C) decrease; appreciate
D) decrease; depreciate
D
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An aggregate demand curve can be drawn by: a. shifting the 45-degree line
b. letting changes in autonomous spending shift the aggregate expenditure line. c. letting changes in the price level shift the aggregate expenditure line. d. letting changes in the level of income shift the aggregate expenditure line. e. letting changes in real GDP shift the aggregate expenditure line.
If the exchange rate of the English pound goes from $1.80 to $1.60, the pound has
a. appreciated, and the English will find U.S. goods cheaper. b. appreciated, and the English will find U.S. goods more expensive. c. depreciated, and the English will find U.S. goods more expensive. d. depreciated, and the English will find U.S. goods cheaper.
If the economy is in a recession,
A. The economy suffers from structural unemployment, which can be alleviated by debt refinancing. B. Larger deficits will decrease the national debt. C. It is operating inside the production possibilities curve, and the opportunity cost of deficit spending is zero. D. Deficit spending will not increase the size of the debt because interest rates will be falling.
If disposable income falls by $50 billion and consumption falls by $40 billion, then the slope of the consumption function is
What will be an ideal response?