If there is currently a surplus of dollars, which of the following would you expect to see in the foreign exchange market?
A) The dollar will appreciate.
B) The dollar will depreciate.
C) There will be a decrease in the demand for dollars.
D) There will be a decrease in the supply of dollars.
Answer: B
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The decline in net worth that can result from an unanticipated decline in the price level is known as ________
A) a credit boom B) deleveraging C) a debt deflation D) federal funds rationing
The crowding-in effect depends on the fact that often a decrease in taxes causes a(n)
a. decrease in interest rates and an increase in the price of existing bonds. b. increase in output, which induces more investment. c. increase in interest rates and a decrease in the price of existing bonds. d. decrease in interest rates and the price of existing bonds.
Keynesian macroeconomists believe that the time it takes for falling wages and prices to eliminate a recessionary gap is __________ enough to say that the economy is __________
A) long; not self-regulating B) long; self-regulating C) short; not self-regulating D) short; self-regulating
Which of the following is inconsistent with the others?
a. Y - C - G > I b. this country had a trade surplus c. the purchase of foreign assets by this country's residents exceed foreigner's purchases of this country's assets d. this country's investment exceeded its domestic saving