When foreigners buy U.S. dollars because they are a more stable currency than the currencies in their countries, they are generating a
A. Supply of U.S. dollars and a demand for a foreign currency.
B. Supply of U.S. dollars and a supply of a foreign currency.
C. Demand for U.S. dollars and a demand for a foreign currency.
D. Demand for U.S. dollars and a supply of a foreign currency.
Answer: D
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According to this Application, after the government deceased cigarette taxes in several Canadian provinces in 1994, the price of cigarettes in these provinces decreased by roughly ________ percent
A) 8 B) 17 C) 50 D) 88
The short-run Phillips curve presents a tradeoff because a
A) lower unemployment rate can be achieved at the cost of a higher inflation rate. B) higher inflation leads to a higher nominal interest rate. C) lower unemployment rate can be achieved at the cost of a lower inflation rate. D) higher price level leads to a lower real GDP. E) higher unemployment rate can be achieved at the cost of a higher inflation rate.
If American and Japanese consumers buy the same basket of goods in each country and there is no inflation in either country,
A) the law of one price will hold. B) deviations from PPP will occur. C) PPP will hold. D) Both A and C.
The adult population must equal the sum of the employed and the unemployed
a. True b. False Indicate whether the statement is true or false