Currency traders expect the dollar to appreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will decrease.
B) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will decrease.
C) The dollar will appreciate, and the equilibrium quantity of dollars will increase.
D) The dollar will appreciate, and the change in the equilibrium quantity of dollars exchanged cannot be determined.
Answer: D
You might also like to view...
What is a black market and how does it influence the market for rental housing if a rent ceiling creates a housing shortage? What determines the level of the black market rent?
What will be an ideal response?
Foreclosure is when a:
A. bank takes ownership of a property because the property owner cannot make the mortgage payments due. B. person is forced to sell his home for less than what he paid for it. C. person is forced to sell his home for less than what it is currently worth. D. person is forced to sell his home for less than what he still owes for it.
Accurately incorporating the present consequences of an action, but ignoring or underestimating the future consequences, is a description of present bias.
Answer the following statement true (T) or false (F)
In Zealand, banks' desired reserve ratio is 20 percent and the currency drain also equals 20 percent. The money multiplier equals ________
A) 2.18 B) 3.33 C) 5.0 D) 3.0