With everything else the same, in the foreign exchange market which of the following increases the supply of U.S. dollars?
I. a fall in the U.S. interest rate
II. a fall in interest rates in foreign countries
III. a rise in expected future exchange rate
A) I only
B) I and II only
C) I and III only
D) I, II, and III
A
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A fall in marginal utility reflects:
a. the water and diamond paradox. b. the law of supply. c. the principle of diminishing marginal utility. d. decreased consumption of a good. e. the fact that total utility must be declining.
If the required reserve ratio is a uniform 25 percent on all deposits, the money multiplier will be:
a. 4.00. b. 2.50. c. 0.40. d. 0.25.
The __________ theory holds that people will expect fiscal and monetary policies to have certain effects and that they will take actions that make these policies ineffective.
Fill in the blank(s) with the appropriate word(s).
Government regulations that deal with financial crises tend to become less effective over time.
Answer the following statement true (T) or false (F)