A rise in the expected future exchange rate will tend to cause, other things the same ________
A) a depreciation of the domestic currency
B) no effect on the value of the U.S. dollar in the short-run
C) an appreciation of the domestic currency
D) no effect on the value of the U.S. dollar
C
You might also like to view...
A common property is
a. both nonrivalrous and nonexcludable. b. nonrivalrous, but not nonexcludable. c. nonexcludable, but not nonrivalrous. d. either nonrivalrous or nonexcludable, but not both.
The concept of "economic pessimism" stems from
A) the theory and empirical fact which states that developing nations face declining export prices relative to increasing import prices. B) the fact that economic growth in an era of globalization is difficult to attain. C) the fact that smaller countries would not enjoy comparative advantage unless they are allowed to subsidize some of their industries. D) the fact that it is impossible to achieve desired economic development without adopting full democratic principles. E) None of the above.
Which of the following is the opportunity cost of money?
a. The use of money as a means of payment b. The trouble of having to get money out of the bank c. The interest forgone by holding money d. The ability to purchase things at a moment's notice e. Commissions paid to brokers
A currency appreciation should
a. reduce net exports and therefore increase aggregate demand. b. raise net exports and therefore decrease aggregate demand. c. reduce net exports and therefore decrease aggregate demand. d. raise net exports and therefore increase aggregate demand.