All of the following is likely to increase the supply of U.S. dollars in the forex market except?
A. If U.S. consumers prefer foreign goods to U.S. goods
B. If investors' confidence in US investments increases.
C. If investors' confidence in foreign economies increases
D. If U.S. interest rates are low relative to foreign interest rates
Answer: B
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Suppose a firm's costs are F + v ? q2 where F and v are positive real numbers and the firm sells its product at the market determined price p. Profits are calculated using
A) p ? q - F - v ? q2. B) [p -(F/q + v ? q)] ? q. C) [(p ? q)/q -(F + v ? q)/q] ? q. D) Both A and B.
In consumer equilibrium: a. the average utility from each dollar spent is the same
b. total utility cannot be increased by reallocating spending among the goods consumed. c. total utility obtained from the consumption of each product is at a maximum. d. the marginal utility from the last unit of each good consumed is the same.
Which of the following best describes the relationship between the velocity of money and the demand for money?
a. The demand for money is not related to the velocity of money. b. When the demand for money increases, the velocity of money increases. c. The demand for money must be stable for the velocity of money to increase. d. When the demand for money declines, the velocity of money increases.
Refer to Figure 5.2, which shows a family of average cost curves. The average variable cost curve is represented by:
A. Curve 1. B. Curve 2. C. Curve 3. D. the vertical sum of curve 2 and curve 3.