Crowding out, following an increase in government spending, results from (the exchange rate is the foreign exchange price of the domestic currency)
A) higher interest rates and a lower exchange rate. B) lower interest rates and a lower exchange rate.
C) lower interest rates and a higher exchange rate. D) higher interest rates and a higher exchange rate.
D
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If a firm in a perfectly competitive industry is experiencing average revenues greater than average costs, in the long-run
a. Some firms will leave the industry and price will rise b. Some firms will enter the industry and price will rise c. Some firms will leave the industry and price will fall d. Some firms will enter the industry and price will fall
An increase in the supply of U.S. dollars in the foreign exchange market would cause the dollar to appreciate with respect to other currencies
a. True b. False Indicate whether the statement is true or false
Using the saving/investment approach, when C + I = C + S
A. income = consumption. B. saving = zero. C. the market is in equilibrium. D. saving = income.
Refer to the diagram. If the supply of loanable funds is S 0 and the demand for loanable funds is D 0 , the equilibrium interest rate and quantity of funds borrowed will be:
A. G and A.
B. F and A.
C. F and C.
D. E and A.