If the U.S. interest rate differential rises, then the effect in the foreign exchange market on the demand for dollars is that the
A) demand for dollars decreases.
B) quantity of dollars demanded decreases.
C) quantity of dollars demanded increases.
D) demand for dollars increases.
E) demand for dollars does not change and the quantity of dollars demanded also does not change.
D
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Crowding out will lead to a decrease in supply of loanable funds, a decrease in real interest rates, and subsequently a decrease in spending by households and firms
a. True b. False Indicate whether the statement is true or false
A binding price floor is shown in
A. panel (b) only. B. neither panel (a) nor panel (b). C. panel (a) only. D. both panel (a) and panel (b).