Borrowing in foreign currencies to spend or invest domestically,
a. decreases demand for the domestic currency, appreciating the domestic currency
b. increases demand for the domestic currency, depreciating the domestic currency
c. increases demand for the domestic currency, appreciating the domestic currency
d. does not affect the exchange rates
c
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In the above figure, if the market produces the efficient amount of purses, then consumer surplus equals triangle
A) abc. B) bcd. C) adc. D) cgf.
A jeweler cut prices in his store by 20%. As a result: a. Its total revenue would fall by 20% if the elasticity of demand was zero
b. Its total revenue would fall, but by less than 20% if the elasticity of demand is greater than zero but less than one. c. Its total revenue would rise if the elasticity of demand is greater than one. d. All of the above would be true.
A $500 increase in investment will shift the aggregate expenditures curve up by:
A. exactly $500 and will increase the equilibrium level of real GDP by exactly $500. B. exactly $500 and will increase the equilibrium level of real GDP by less than $500. C. exactly $500 and will increase the equilibrium level of real GDP by more than $500. D. more than $500 and will increase the equilibrium level of real GDP by more than $500.
That portion of the value of owners' property that exceeds the amount of their mortgage debt is called
A) equality. B) escrow. C) surplus. D) equity.