An increase in the U.S. interest rate will most likely
A) reduce the attractiveness of investment in the United States.
B) lead to a decrease in the value of the U.S. dollar.
C) lead to an inflow of funds to the United States and an appreciation of the dollar.
D) provide a stimulus to U.S. export industries.
C
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Which of the following actions of the Fed will increase money supply in the U.S. directly?
a. Purchase U.S. government bonds b. Increase the federal funds rate c. Increase the reserve requirement d. Increase the discount rate e. Ban sales of private mutual funds
The economy's money supply curve is vertical
a. True b. False
One reason that diseconomies of scale arise is because:
A. of the difficulties involved in managing and coordinating a large business enterprise. B. firms must be large both absolutely and relative to the market to employ the most efficient productive techniques available. C. beyond some point marginal product declines as additional units of a variable resource (labor) are added to a fixed resource (capital). D. the short-run average total cost curve rises when marginal product is increasing.
If a bottle of soda and bottled juice are substitutes, when the price of soda rises
A. demand for bottled juice falls. B. quantity of bottled juice demanded falls. C. quantity of bottled juice demanded rises. D. demand for bottled juice rises.