Suppose we were analyzing the pound per Swiss franc foreign exchange market. If Switzerland's interest rate rises relative to England and nothing else changes, then the:
a. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market rises, causing an appreciation of the Swiss franc.
b. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing an appreciation of the Swiss franc.
c. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market rises, causing an uncertain change in the value of the Swiss franc.
d. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing a depreciation of the Swiss franc.
e. Neither supply nor demand in the foreign exchange market change because relative international prices influence trade flows and not the exchange rate.
.A
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Printing of paper money by the Confederate government led to
a. an immediate hyperinflation that lasted for the entire period of the War. b. a short-term hyperinflation that lasted for only the first year of the War.c hyperinflation in the final months of the War.d sporadic episodes of hyperinflation that emerged throughout the War.
Suppose a major computer virus struck the nation's computers and all hard drives were erased. What would happen in the labor market?
a. The real wage would increase and so would employment. b. The real wage would not change, but employment would decrease. c. The real wage would increase and employment would decrease. d. The real wage would decrease and so would employment. e. The real wage would decrease and employment would increase.
What are "mortgage-backed securities"?
A. Company stock shares for financial institutions that lend to home buyers. B. Bonds backed by mortgage payments. C. Treasury bills and savings bonds that banks sold to maintain liquidity during the mortgage default crisis. D. Insurance against mortgage loan defaults.
An economic principle that explains why countries produce different goods and services is
A) trade as a percentage of GDP. B) absolute advantage. C) NAFTA. D) comparative advantage.