How would an increase in the U.S. federal budget deficit affect the exchange rate in the market for dollars?
A) The exchange rate will increase.
B) The exchange rate will not be affected by a change in the federal budget deficit.
C) The exchange rate will decrease.
D) The impact of the increase in the federal budget deficit on the exchange rate cannot be predicted.
A
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Government revenue from an excise tax of a given amount is greater when demand is relatively inelastic than when it is relatively elastic
Indicate whether the statement is true or false
U.S. government regulation of social and economic activity
A) only began after World War II. B) costs less now than it did in the 1980s. C) has increased steadily since 1970. D) is confined to antitrust law.
In the short-run for a purely competitive market, a manufacturer will stop production when:
a. the total revenue is less than total costs b. the contribution to fixed costs is zero or less c. the price is greater than AVC d. operating at a loss e. a and b
Suppose the United States is experiencing a balance of payments deficit. To prevent the exchange rate from depreciating, the U.S. Treasury must:
A. sell foreign currency and buy dollars. B. sell dollars and buy foreign currency. C. sell both dollars and foreign currency. D. buy both dollars and foreign currency.