The supply of dollars in the foreign exchange market is likely to be upward sloping because as the price of a dollar (the exchange rate) rises
A. Americans demand more foreign goods because these goods have become less expensive to American consumers.
B. Americans demand fewer foreign goods because these goods have become more expensive to American consumers.
C. foreigners demand fewer foreign goods because these goods have become more expensive to foreign consumers.
D. foreigners demand more American goods because these goods have become less expensive to foreign consumers.
Answer: A
You might also like to view...
Increased liquidity in recent decades has reduced interest rates on which of the following assets (holding constant all other things that affect interest rates)?
A) U.S. government bonds B) bonds issued by large corporations C) business loans D) bonds issued by state governments
Reduction or elimination of dividend taxes is designed, in part, to
A) reduce the double taxation burden on individuals. B) make rich people richer. C) reduce inefficiencies in the production process. D) increase corporate tax levels.
All of the following would show a more equal distribution than the distribution of money income EXCEPT
A) total income. B) after-tax income. C) wealth. D) lifetime earnings.
According to classical macroeconomic theory, changes in the money supply affect
a. unemployment and the price level. b. unemployment but not the price level. c. the price level, but not unemployment. d. neither the price level nor unemployment.