Everything else equal, an increase in the demand for dollars in exchange for pesos:
A) will cause the dollars to appreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market.
B) will cause the dollars to appreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market.
C) will cause the dollars to depreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market.
D) will cause the dollars to depreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market.
A
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If the basket of goods purchased by the typical consumer costs $188.80 this year and it cost $160 in the base year, prices have risen ________ since the base year
A) 14.89% B) 18% C) 28.8% D) 188.8%
When workers purchase more leisure and work less at higher wages, the supply curve is
A. vertical. B. horizontal. C. positively sloped. D. backward bending.
Exhibit 21-7 Foreign exchange market for U.S. dollars and British pounds
?
Exhibit 21-7 shows a situation in which:
A. both the dollar and the pound have depreciated. B. both the dollar and the pound have appreciated. C. the dollar has depreciated and the pound has appreciated. D. the dollar has appreciated and the pound has depreciated.
Which of the following occurs as the economy moves leftward along a given IS curve?
A) An increase in the interest rate causes investment spending to decrease. B) An increase in the interest rate causes money demand to increase. C) An increase in the interest rate causes a reduction in the money supply. D) A reduction in government spending causes a reduction in demand for goods. E) An increase in taxes causes a reduction in demand for goods.