Which one of the following would create a demand for a foreign currency and supply of dollars in the foreign exchange market?
a. the spending of French tourists in the United States
b. the purchase of Japanese automobiles by American consumers
c. the sale of U.S. computer equipment to a French buyer
d. the purchase of a U.S. shoe factory by a Mexican investor
B
You might also like to view...
The term demand refers to
a. a collection of numbers, listing the quantities demanded at a variety of hypothetical prices. b. the information on tastes, incomes, and prices needed to determine people's desired purchases of a commodity. c. the amount of a commodity that is being purchased under current market conditions. d. the quantity purchased at each and every possible level of income.
Which of the following is an example of foreign direct investment?
A) American Airlines builds a hub in China. B) A stock broker from China sells you a Chinese government savings bond. C) You buy a plane that was made in China. D) You purchase a plane ticket to China on American Airlines.
Fiscal policy is impotent when the LM curve is
A) vertical. B) horizontal. C) downward-sloping. D) horizontal or downward-sloping.
During the first year of the Bush administration in 2001, the American economy
a. increased its already rapid growth rate. b. experienced high levels of inflation. c. slowed in its rate of economic growth. d. experienced a decrease in the rate of unemployment.