Tight monetary policy ________ interest rates which ________ the demand for a currency and ________ the fundamental value of the exchange rate.
A. increases; increases; decreases
B. increases; decreases; increases
C. decreases; decreases; decreases
D. increases; increases; increases
Answer: D
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Financial intermediaries reduce risk by
A) investing in a large number of projects with independent returns. B) gaining expertise in evaluating and monitoring investments. C) investing in a small number of projects with independent returns. D) limiting the diversity of their investment portfolios.
JR Electronics hurries to sell off their tablet computers by offering a spring sale. Which of the following most likely caused this to happen?
a. The company expects the technology for producing tablet computers to become obsolete. b. The company expects the price of tablet computers to plummet. c. The company expects the price of tablet computers to soar. d. The company expects the technology for producing tablet computers to improve.
After the formation of North American Free Trade Agreement (NAFTA), Mexico became a more attractive country for business investments of foreign firms.
Answer the following statement true (T) or false (F)
Output is determined in
A) the goods market and also influences money demand and the interest rate. B) the money market and also influences money demand and the interest rate. C) the goods market with no influence from the money market. D) the money market with no influence on the goods market.