A decrease in the foreign interest rate relative to the domestic interest rate ________ the exchange rate value of a foreign currency in the short run.

A. causes fluctuations in
B. does not affect
C. lowers
D. raises


Answer: C

Economics

You might also like to view...

The ongoing normal creation and destruction of jobs creates

A) frictional unemployment. B) structural unemployment. C) avoidable unemployment. D) cyclical unemployment. E) destructive unemployment.

Economics

If it takes 118 Japanese yen to buy one dollar, then how many dollars does it take to buy one euro?

A) $0.0085 B) $1.18 C) $0.85 D) $0.01286 E) There is not enough information to answer the question.

Economics

The marginal tax rate refers to ______.

a. taxes applied to income from sources other than wages b. total taxes paid divided by total income c. the rate paid on the last dollar of income d. the smallest percentage of income a person has to pay in taxes

Economics

First, explain each of the following: hysterisis and Eurosclerosis. Second, explain how each of them can be used to explain the relatively high natural rate of unemployment in Europe

What will be an ideal response?

Economics