In the foreign exchange market where French francs are traded for Japanese yen, a decrease in the interest rate in France is most likely to cause:
a. a decrease in the yen price of the French franc.
b. an increase in the interest rate in Japan.
c. an increase in the yen price of the French franc.
d. an increase in the demand for French francs.
e. an increase in the supply of yen.
a
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In the circular flow model, households supply resources such as labor services in the factor market
Indicate whether the statement is true or false
A rule that a foreign company export a minimum percentage of its output is considered
a. local content requirement b. national treatment c. performance requirement d. most favored nation treatment e. none of the above
Which of the following determines how much money an individual will decide to hold?
a. Investment spending b. Income taxes c. The price level d. The supply of money e. Real GDP
As the price level rises
a. people will want to hold more money, so the interest rate rises. b. people will want to hold more money, so the interest rate falls. c. people will want to hold less money, so the interest rate falls. d. people will want to hold less money, so the interest rate rises.