The quantity of U.S. dollars demanded in foreign exchange markets is primarily a function of ________
A) the demand for U.S. goods and services
B) the demand for U.S. goods by foreigners
C) the expected return on U.S. dollar assets relative to foreign assets
D) foreign interest rates
C
You might also like to view...
Which of the following statements is true of rational expectations?
A) Rational expectations forecasts are always correct. B) For a trader with rational expectations, the expectation of an asset's price equals the optimal price forecast. C) If traders have rational expectations, any announcement by a company will have an effect on its stock price, even if the market was already aware of the facts being announced. D) If a trader really has rational expectations, he or she was always earn a greater than normal return on his or her financial portfolio.
A firm's markup:
A. is the amount by which its price exceeds its marginal cost, expressed as a percentage of its price. B. is the amount by which its marginal cost exceeds its average cost. C. is the amount by which its average cost exceeds its marginal cost. D. is the value of its profit.
Keynes argued that because of sticky prices and wages
A) the short-run aggregate supply curve could be horizontal. B) the short-run aggregate supply curve is probably vertical. C) the long-run aggregate supply curve slopes downward. D) the aggregate demand curve is vertical.
Limited liability is a characteristic of
A) partnerships only. B) corporations only. C) partnerships and proprietorships only. D) proprietorships only.