The demand for foreign currency in the United States is a
A. direct demand based on the demand for U.S. dollars.
B. derived demand based on the demand for U.S. products.
C. derived demand based on the demand for foreign products.
D. direct demand.
Answer: C
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________ is(are) the profits that a government receives because the value of money printed is greater than the cost of printing it
A) Seignorage B) Money revenue C) Currency gain D) Printing income
Tobin's generalized portfolio approach to the demand for money is based on the assumption that
A) money is needed for transactions. B) all interest-bearing assets are risky. C) the levels of risk and return vary among assets. D) variations in wealth have little effect on asset demands.
Improvements in the productivity of labor will tend to: a. increase the supply of labor
b. increase the demand for labor. c. decrease the supply of labor. d. decrease the demand for labor.
If interest rates are high, the future payoff for every dollar saved is low.
Answer the following statement true (T) or false (F)