If the supply of dollars in the market for foreign-currency exchange shifts left, then the exchange rate
a. rises and the quantity of dollars exchanged falls.
b. rises and the quantity of dollars exchanged does not change.
c. rises and the quantity of dollars exchanged rises.
d. falls and the quantity of dollars exchanged does not change.
a
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A decrease in autonomous investment of $100 that occurs when the marginal propensity to save (MPS) equals 0.25 will lead to a decrease in real Gross Domestic Product (GDP) of
A) $800. B) $25. C) $400. D) $100.
__________ cannot be touched; examples include integrity, confidence, and literacy
a. Tangible resources b. Intangible resources c. Societal resources d. Familial resources
If current aggregate expenditure equals current production, an economy is in equilibrium
a. True b. False Indicate whether the statement is true or false
To fix the foreign currency price of domestic currency below the free market equilibrium rate, a government must:
a. sell both its own currency and foreign exchange. b. buy its own currency and sell foreign exchange. c. buy both its own currency and foreign exchange. d. sell its own currency and buy foreign exchange. e. revalue its own currency.