Which of the following can a nation use to shift the supply or demand for its currency?
A. Fiscal, monetary, and trade policies.
B. Fiscal policy but not monetary policy.
C. Monetary policy but not trade policy.
D. Trade policies such as tariffs but not fiscal policy.
Answer: A
You might also like to view...
Suppose the Federal Reserve releases a policy statement today which leads people to believe that the Fed will be enacting expansionary monetary policy in the near future
Everything else held constant, the release of this statement would immediately cause the demand for U.S. assets to ________ and the U.S. dollar to ________. A) increase; appreciate B) decrease; appreciate C) increase; depreciate D) decrease; depreciate
In the long run, the perfectly competitive firm
A) does not have a shut down price. B) earns only a normal profit. C) may produce even if it suffers a loss. D) earns an economic profit.
Borrowing in foreign currencies to spend or invest domestically,
a. decreases demand for the domestic currency, appreciating the domestic currency b. increases demand for the domestic currency, depreciating the domestic currency c. increases demand for the domestic currency, appreciating the domestic currency d. does not affect the exchange rates
If the value of the euro increases relative to the U.S. dollar, then French goods will be less expensive in the U.S
a. True b. False