The demand for dollars in the foreign exchange market will decrease and hence the demand curve for dollars will shift leftward if
A) the U.S. interest rate differential decreases.
B) the expected future exchange rate rises.
C) the exchange rate for the dollar rises.
D) the U.S. interest rate differential increases.
A
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The Fed's decision to concentrate more on interest rates in conducting near-term monetary policy
A) was the result of deregulation and innovation in financial markets. B) was necessitated by the inability to identify a stable demand for money. C) is sometimes misrepresented by the media as the Fed "setting" interest rates. D) all of the above.
In a market economy, prices help determine the distribution of goods and services but not the allocation of resources
a. True b. False Indicate whether the statement is true or false
Consider a setting in which there is a negative externality, but no positive externality. The market outcome is __________________; government can bring about the ___________________ outcome if it sets a tax equal to the __________________
A) efficient; inefficient; MSC B) efficient; inefficient; MEC C) inefficient; efficient; MEC D) inefficient; efficient; MPC E) inefficient; efficient; MSB
If the price of a good shown on the vertical axis of a budget graph is cut in half and the price of the good on the horizontal axis is cut by 75%, then the budget constraint shifts
A. right and becomes steeper. B. left and becomes steeper. C. right and becomes flatter. D. left and becomes flatter.