If the expected future exchange rate decreases, then the supply of dollars ________ and the demand for dollars ________
A) increases; increases
B) decreases; increases
C) increases; decreases
D) decreases; decreases
E) does not change; does not change
C
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Rent controls and controls on other prices often aggravate the very problem they are intended to solve
a. True b. False Indicate whether the statement is true or false
Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,275 a ton. Over the same time a measure of the overall price level increased from 150 to 156 . The price of iron ore increased by
a. less than inflation, so it became less scarce. b. less than inflation, so it became more scarce. c. more than inflation, so it became more scarce. d. more than inflation, so it became less scarce.
The largest U.S. economic expansion between 1890 and the present occurred during which of the following events?
a. The Railroad Prosperity b. World War II c. The Great Tuna Boom d. The OPEC Prosperity of 1974