If the interest rates in the Eurozone increase, then which of the following is likely to happen?

(a) Deposits would increase in American banks.
(b) Money would flow into the European banking system.
(c) The euro would tend to depreciate relative to the dollar.
(d) None of the above.


Answer: (b) Money would flow into the European banking system.

Economics

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An increase in real GDP leads to

A) a movement upward along the demand for money curve but no shift of the curve. B) a movement downward along the demand for money curve but no shift of the curve. C) neither a shift in the demand for money curve nor a movement along the curve. D) a leftward shift in the demand for money curve. E) a rightward shift in the demand for money curve.

Economics

Greater labor force participation for households at higher real wage rate is one reason that

A) the demand for labor curve is upward sloping. B) the demand for labor curve is downward sloping. C) the supply of labor curve is upward sloping. D) the supply of labor curve is downward sloping.

Economics

Costing more than the average person's yearly income, the Atlantic passage in the early seventeenth century was roughly

a. £1 b. £10 c. £100 d. £1,000

Economics

A rightward shift in aggregate demand will cause an increase in output and no change in the price level if aggregate supply is

A. Upward-sloping to the right. B. Vertical. C. Horizontal. D. Downward-sloping to the right.

Economics