Foreign demand for U.S. dollars also represents a supply of dollars.
Answer the following statement true (T) or false (F)
False
Foreign demand for U.S. dollars does not represent a supply of U.S. dollars, but U.S. demand for foreign goods would create a supply of U.S. dollars.
You might also like to view...
Which of the following would shift the supply curve to the left?
A) A fall in the expected future price of the good B) A rise in the expected future price of the good C) A rise in technology that lowers the cost of producing the good D) A positive supply shock that brings more output onto the market
If Bank A holds $200 in reserves, deposits are $1000, and the desired reserve ratio is 15 percent, how much are excess reserves?
A) zero, because banks never hold excess reserves B) $200 C) $50 D) $150
Automated teller machines
A) are more costly to use than human tellers, so banks discourage their use by charging more for use of ATMs. B) cost about the same to use as human tellers in banks, so banks discourage their use by charging more for use of ATMs. C) cost less than human tellers, so banks may encourage their use by charging less for using ATMs. D) cost nothing to use, so banks provide their services free of charge.
Based on the table "Real and Nominal GDP," if year one is the base year, then the real GDP in year two, is ________
A) 5000 B) 5250 C) 5900 D) 6175 E) none of the above