An increase in the interest rate causes investment to
a. rise and the exchange rate to appreciate.
b. fall and the exchange rate to depreciate.
c. rise and the exchange rate to depreciate.
d. fall and the exchange rate to appreciate.
d
You might also like to view...
In making decisions about what to consume, a person's goal is to
A) allocate her limited income among all the products she wishes to buy so that she receives the highest total utility. B) maximize her marginal utility from the goods and services she wishes to buy using her limited income. C) buy low-priced goods rather than high-priced goods. D) consume as many necessities as possible and then, if there is money left over, to buy luxuries.
According to Fed Chairman Bernanke's analysis of the Depression-era financial system,
a. bank lending was often based on long-term relationships between banks and customers. b. after the banking system collapsed, it recovered quickly due to government intervention. c. bank lending at large was a severely depersonalized endeavor by 1925, which caused risky loan practices. d. Both a and b are correct.
An elastic demand is one in which the elasticity is greater than:
a. two. b. four. c. one. d. three.
Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the price ceiling becomes effective,
a. a smaller quantity of the good is bought and sold. b. a smaller quantity of the good is demanded. c. a larger quantity of the good is supplied. d. the price rises above the previous equilibrium.