If interest rates in the United States are higher than interest rates in Europe, what is most likely to happen?
A. Supply of dollars will increase, causing appreciation of the dollar.
B. Supply of euros will increase, causing appreciation of the euro.
C. Demand for dollars will increase causing appreciation of the dollar.
D. Demand for dollars will decrease, causing depreciation of the dollar.
Answer: C
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Which of the following is a nominal quantity?
A. The amount of coal mined in one month B. The current price of a barrel of oil C. The number of people unemployed D. The number of cars produced in 2005
Most mutual funds are
A) no-load funds. B) load funds. C) large-load funds. D) small-load funds.
Simon Kuznets's research in his National Income and Its Composition showed that
a. Keynes's absolute income hypothesis is empirically correct b. budget deficits crowd out consumption spending c. a nation's MPC tends to remain fairly constant regardless of the absolute level of national income d. as national income increases, consumption spending increases, but by diminishing amounts e. consumption and income cannot be linked in any meaningful fashion
Suppose your grandmother told you (today) that she had set aside an amount of money in a savings account bearing 3% interest that was sufficient to give you a $5,000 graduation present in exactly four years. How much would she have had to set aside?
A. $5000 / (1.03)4 B. $5000 / (1+.034) C. $5000 D. $5000 × (1.03)4