Which of the following generates demand for foreign currencies?
A. Exports from the United States to foreign countries.
B. Transfers of money from foreigners to relatives in the United States.
C. The purchase by foreigners of bonds issued by the U.S. government.
D. Expenditures by Americans traveling abroad.
Answer: D
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Firms in an oligopoly market tend to have strategies that are ____ and ____ economic profits. a. Independent of one another; earn guaranteed b. Independent of one another; are not guraranteed
c. Interdependent with one another; earn guaranteed d. Interdependent with one another; are not guraranteed
Which of the following is equivalent to the trade deficit?
a. Imports ? exports b. Net capital inflow c. Exports + imports d. Net exports - imports e. Exports ? imports
To test the theory that if the price of pens rises, then pen purchases fall, an economist would
A. collect data on the price of pens and the price of pencils because the two goods are substitutes. B. investigate whether people purchase more pens when their income rises. C. analyze data on pen purchases linked to the price of pens, holding other factors constant. D. ask his or her friends if they would buy fewer pens when the price rises.
The headline in the local paper today is "College tuition next fall rise by 6 percent." This statement is an example of
A. a positive statement. B. an invalid statement. C. ceteris paribus. D. a normative statement.