As the dollar depreciates relative to the Russian ruble, U.S. goods become cheaper for Russians to purchase. Therefore, in the foreign exchange market, the:
A. supply curve of dollars is downward sloping.
B. demand curve for dollars is downward sloping.
C. supply curve of euros is downward sloping.
D. demand curve for euros is upward sloping.
Answer: B
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The lending ability of commercial banks increases when the ________.
A. discount rate is raised B. Fed buys securities in the open market C. Treasury collects tax revenues D. reserve requirement is raised
The level of GDP at which planned expenditure equals the amount of output produced is the
A) equilibrium output. B) potential output. C) long-run output. D) autonomous output.
A change in which of the following shifts the demand curve?
A) the number of sellers in the market B) the price of the resources used to produce the product C) the technology with which the product is produced D) the tastes and preferences of consumers
Which of the following industries is least likely to exhibit the characteristic of free entry?
a. selling running apparel b. satellite radio c. yoga studios d. wheat farming