The supply of dollars in the foreign exchange market is likely to be upward sloping because as the price of a dollar (the exchange rate) falls
A. foreigners demand more American goods because these goods have become less expensive to foreign consumers.
B. foreigners demand more foreign goods because these goods have become more expensive to foreign consumers.
C. Americans demand more foreign goods because these goods have become less expensive to American consumers.
D. Americans demand fewer foreign goods because these goods have become more expensive to American consumers.
Answer: D
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When a nation exports a good, its ________ surplus decreases, and when it imports a good, its ________ surplus decreases
A) consumer; producer B) consumer; consumer C) producer; producer D) producer; consumer E) total; consumer
The aggregate demand effect from a rise in government spending is maximized
A) the lower the level of capital mobility. B) the higher the level of capital mobility. C) when the exchange rate floats freely. D) when the rise is matched by a decrease in the money supply.
Currently, exports make up approximately ______ of world GDP
a. 15 percent b. 03 percent c. 30 percent d. 70 percent e. 60 percent
An agreement with another country in which it agrees to import more from the United States is called a
A) VRA. B) VIE. C) VAR. D) VAT.