In the market for euros, an increase in U.S. real interest rates tends to
A. cause no change in equilibrium price.
B. increase equilibrium price.
C. decrease equilibrium price.
D. increase excess demand.
Answer: C
You might also like to view...
To the extent that the CPI does not accurately measure the true price level,
a. the BLS will change the underlying market basket of goods b. it is useless c. it exaggerates the true cost of living d. it results in underindexation of social security payments e. it underestimates the true cost of living
When the Fed wants US interest rates to increase, it will usually sell US t-bonds to banks
a. true b. false
Multinationals typically operate in a market structure that would best be described as
A. inherently disadvantaged. B. perfect competition. C. monopoly. D. an oligopoly.
If an increase in investment causes an increase in real output beyond the full-employment level, the result will be
A. An increase in undesired inventories. B. An increase in the recessionary GDP gap. C. Cost-push inflation. D. Demand-pull inflation.