If interest rates in the U.S. increases relative to interest rates in Europe:
A. the price of U.S. assets should increase.
B. the supply of euros on the foreign exchange market would increase.
C. the demand for dollars on the foreign exchange market would increase.
D. all of the answers given are correct.
Answer: D
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Suppose wages in the market for plumbers increase. Some plumbers start taking on extra plumbing jobs while others cut back on the number of hours they work. What could explain this?
What will be an ideal response?
Assume that the Cambridge k = .20. If income is equal to $100,000, the transactions demand for money is equal to
A) $20,000. B) $50,000. C) $100,000. D) $500,000.
Which of the following assumptions is TRUE about monopolistic competition?
A) The firm's products are differentiated. B) There are few producers of the product. C) Firms will not advertise. D) It is difficult for firms to enter this industry.
Figure 3-15
Refer to . Which area represents the increase in producer surplus when the price rises from P1 to P2?
a.
BCE
b.
ACF
c.
ABED
d.
AFEB