If the U.S. interest rate differential decreases, then in the foreign exchange market the
A) demand for dollars increases.
B) quantity supplied of dollars decreases.
C) supply of dollars increases.
D) quantity supplied of dollars increases.
E) supply of dollars decreases.
C
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The trade-offs made by the U.S. government to fund the war in Iraq
A) exceed the benefits derived from the war. B) show that the government is justified in its war spending. C) prove that the government is spending too much on the war. D) represent what was potentially sacrificed to engage in the war.
Which of the following is an assumption made while constructing a production possibilities frontier [PPF]?
a. Dynamic technological know-how b. Flexible resource quality c. Fixed resource quantity d. Full and efficient use of resources e. Flexible money supply
From a new deposit in a checking account potential money creation is: a. excess reserves times money multiplier
b. initial deposit times money multiplier. c. actual reserves times required reserve ratio. d. required reserves times money multiplier.
If the price of new automobiles rises in the U.S. market while prices remain unchanged in foreign markets,
a. foreign firms will want to export fewer automobiles to the United States b. foreign firms will want to export more automobiles to the United States c. foreign firms will not change their exports to the United States since it is a different market d. U.S. firms will want to export more automobiles to foreign markets e. U.S. firms will not change their exports to foreign markets unless foreign prices also change