Holding other things constant, an increase in the inflation rate in the US compared to China may cause the demand for dollar to _____________ and the supply for dollar to __________
a. Increase; decrease
b. Increase, increase
c. Decrease; Increase
d. Decrease; Decrease
c
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Which of the following is "crowded out" by higher interest rates that can be the result of expansionary fiscal policy?
A) net exports B) private investment C) consumption D) All of the above are crowded out by higher interest rates.
Unlike Germany, Japan has
A) a suppressed corporate debt market. B) laws against banks holding corporate stock. C) a large stock market. D) close ties between a firm and a single bank.
Fashion Buyers I A buyer for a department store must decide on which designs the stores will carry before he knows what the demand will be in the coming season. Choosing a poorly demanded design means lots of unsold merchandise and losses that are
$200,000 on average. Passing on a highly demanded design means unsold merchandise and missing out on profits that are $300,000 on average. What probability of a design's success should he be in order to choose to carry it?
Refer to the diagram where D and S are the United States' demand for and supply of Swiss francs. At the equilibrium exchange rate, E, the United States' balance of payments is in equilibrium. A shift of the demand curve to D' might be the result of:
A. a relative decline in interest rates in Switzerland.
B. a reduction in the United States' relative price level.
C. a recession in the United States that slows its rate of growth.
D. a relative decline in interest rates in the United States.