An increase in the domestic interest rate causes the demand for domestic assets to shift to the ________ and the domestic currency to ________, everything else held constant
A) right; appreciate
B) right; depreciate
C) left; appreciate
D) left; depreciate
A
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Consider a closed economy without the government. If the GDP of the economy is $25,000 and the savings rate in the economy is 25%, the aggregate savings in the economy is:
A) $8,000. B) $8,650. C) $6,250. D) $3,320.
What is the government purchases multiplier if the tax rate is 0.1 and the marginal propensity to consume is 0.9? Assume the economy is closed
A) 5.3 B) 10 C) 11.1 D) 100
Explain how it is possible for the economy to produce at a point beyond its institutional production possibilities frontier (PPF), but not beyond its physical PPF
The longest expansion since records have been kept began in
A. March 1991. B. November 1982. C. July 1980. D. March 1975.