Currency traders expect the dollar to depreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will decrease.
B) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will decrease.
C) The dollar will appreciate, and the equilibrium quantity of dollars will increase.
D) The dollar will depreciate, and the change in the equilibrium quantity of dollars exchanged cannot be determined.
Answer: D
You might also like to view...
Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product, to answer the next question.
With a Pt?Pc per-unit tariff, the quantities sold by foreign and domestic producers respectively will be
A. y?w and w. B. z?x and x. C. x?v and x. D. z?w and x.
If the government institutes a specific tax for a good
A) the producer simply passes the entire tax on to the consumer. B) the producer must absorb the entire tax. C) the producer can generally only pass part of the tax onto the consumer. D) the equilibrium price drops.
Do you believe that class size reductions will help student performance?
What will be an ideal response?
Compared to short-term bonds, other things the same, long-term bonds generally have
a. more risk and so they pay higher interest rates. b. less risk and so they pay lower interest rates. c. less risk and so they pay higher interest rates. d. about the same risk and so they pay about the same interest rate.