Which of the following will most likely cause a nation's currency to appreciate on the foreign exchange market?
A. A decrease in domestic interest rates
B. An increase in foreign interest rates
C. Domestic inflation of 10 percent while the nation's trading partners are experiencing stable prices
D. Stable domestic prices while the nation's trading partners are experiencing 10 percent inflation
Answer: D
You might also like to view...
Which of the following would be considered consumption?
A. Doris bought a new van for her delivery business. B. Mike was renting an apartment, but has now built a new house. C. Sid works for the Bureau of Motor Vehicles. He just bought a new flat screen TV for people to watch while waiting to be served. D. Tina replaced the old water heater in her house with a new one that is more energy efficient.
In economics, resources are also known as
A) minerals. B) factories. C) factors of production. D) human capital.
Which of the following are likely to increase investment and as a result, aggregate demand?
a. decreased demand for investment goods b. falling real interest rates c. rising real interest rates d. increased business taxes
Given the current structure of the Social Security and Medicare programs, the retirement of the baby boom generation during the years following 2012 will be most likely to
a. reduce government expenditures on health care and income transfers. b. increase government expenditures on health care and income transfers. c. result in large budget surpluses. d. result in lower tax rates.