Interest rates in the United States rise relative to interest rates in other countries. As a result, in the foreign exchange market
A) the supply curve of dollars shifts leftward.
B) the supply curve of dollars shifts rightward.
C) the demand curve for dollars shifts leftward.
D) there is an upward movement along the supply curve of dollars.
A
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A government that generates revenue mostly through an inflation tax faces the risk of:
A) rapidly falling prices. B) hyperinflation. C) mass tax evasion. D) a sudden fall in revenue.
Government transfer payments
A. are subtracted from national income to obtain disposable income. B. can be considered as negative taxes. C. intervene between national product and disposable income in the same way as taxes. D. are counted the same as taxes in computing national income.
If the reserve ratio is 7.5 percent, the money multiplier is
a. 7.5. b. 10.3. c. 13.3. d. 11.3.
The market system corrects a shortage by:
a. Raising product price to decrease production b. Lowering product price to increase production c. Raising product price to increase production d. Lowering product price to decrease production