An increase in the interest rate in the United States compared to the interest rate in Great Britain will
A) increase the U.S. interest rate differential.
B) increase the demand for pounds.
C) shift the demand curve for dollars rightward.
D) Both answers A and C are correct.
D
You might also like to view...
Depreciation is subtracted from GNP to determine
A) net national product (NNP). B) net GDP. C) net imbalance on exports. D) net income.
In the United States today, money consists of
A) currency only. B) deposits at banks only. C) coins only. D) currency and deposits at banks.
The largest government-run health care system in the world, with 1.7 million employees, is in
A) the United Kingdom. B) the United States. C) Japan. D) Canada.
The Keynesian theory is consistent with the business cycle fact that inflation is
A) procyclical and leading. B) procyclical and lagging. C) countercyclical and leading. D) countercyclical and lagging.