A(n) ________ in U.S. interest rates will cause a decrease in the demand for U.S. dollars and a(n) ________ in the (per dollar) exchange rate.
A. increase; increase
B. increase; decrease
C. decrease; increase
D. decrease; decrease
Answer: D
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If a nation is more productive than a trading partner, can it still gain from trade with that partner? Use the concepts of absolute and comparative advantage to explain
What will be an ideal response?
In the case where the spot and forward rates are equal, the currency is said to be selling
A) profitably. B) flat. C) normal. D) risky.
The currency of the United States is:
a. backed dollar for dollar by gold. b. backed by a gold cover of 50 percent. c. not backed by any precious metal. d. backed by the government's silver reserves. e. backed by the government's gold and silver reserves.
Which of the following is a difference between corporations and partnerships?
a. Partnerships are subject to double taxation; corporations are not. b. With partnerships, ownership rights are divisible and easily transferable; this is not true for corporations. c. Corporate owners face limited liability; owners of partnerships do not. d. Corporations always have more owners than partnerships.