A decrease in the foreign interest rate causes the demand for domestic assets to ________ and the domestic currency to ________, everything else held constant
A) increase; appreciate
B) increase; depreciate
C) decrease; appreciate
D) decrease; depreciate
A
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An example of a market failure is
A) a firm is dumping toxic waste that is making people sick. B) when not everyone who wants to see a major league football game can. C) when there is an increase in demand and a shortage develops. D) unemployment.
John Maynard Keynes developed his economic theories in the
A) 1870s. B) 1900s. C) 1930s. D) 1960s.
If the dollar appreciates in value relative to foreign currencies, aggregate demand ________.
A. increases because net exports increase B. decreases because consumption decreases C. decreases because net exports decrease D. increases because consumption increases
Suppose that real domestic output in an economy is 2400 units, the quantity of inputs is 60, and the price of each input is $30. All else equal, if the price of each input decreased from $30 to $20, productivity would:
A. increase from $50 to $60 and aggregate supply would decrease. B. increase from $60 to $70 and aggregate supply would increase. C. increase from $40 to $90 and aggregate supply would decrease. D. remain unchanged and aggregate supply would increase.