If the Fed increases interest rates, other things remaining the same, foreigners demand ________ dollars, thereby ________ the exchange rate
A) more; decreasing
B) fewer; increasing
C) the same number of; not affecting
D) fewer; decreasing
E) more; increasing
E
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Keynes's motivation in developing the aggregate output determination model stemmed from his concern with explaining
A) the hyperinflations of the 1920s. B) why the Great Depression occurred. C) the high unemployment in Great Britain before World War I. D) the high unemployment in Great Britain after World War II.
Bargaining does NOT normally occur in
A) vertical business relationships. B) wages and working conditions under a union contract. C) posted price markets. D) the legal system.
How does an open market purchase by the Fed affect the level of bank reserves and the interest rate? Illustrate the interest rate effect by drawing the appropriate graph
If Country A is relatively abundant in labor and Country B is relatively abundant in capital, the Heckscher-Ohlin theory predicts that Country A will export relatively labor-intensive goods and Country B will export relatively capital-intensive goods.
Answer the following statement true (T) or false (F)