How would a decrease in the U.S. budget deficit affect the exchange rate in the market for dollars?
A) The exchange rate will not be affected by a change in the budget deficit.
B) The exchange rate will decrease.
C) The exchange rate will increase.
D) The impact of the decrease in the budget deficit on the exchange rate cannot be predicted.
B
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Social regulation is focused on all of the following EXCEPT
A) the impact of production on the environment and society. B) better working conditions, and safer and better products. C) a better quality of life through a less polluted environment. D) ensuring costs are minimized and benefits are maximized.
If a household's income rises by 30%, its budget constraint will
A. shift in parallel to the old one. B. pivot at the Y-intercept. C. shift out parallel to the old one. D. be unaffected.
Potential GDP is reached when
A) unemployment is zero. B) there is no cyclical unemployment. C) unemployment is above full employment. D) unemployment is below full employment. E) the natural unemployment rate equals zero.
Under conditions of perfect competition, if profits are being made,
a. new firms are attracted into the industry. b. the market supply decreases. c. average revenue increases. d. new firms are excluded.