If the real exchange rate for the dollar is below the equilibrium level, the quantity of dollars supplied in the market for foreign-currency exchange is
a. less than the quantity demanded and the dollar will appreciate.
b. less than the quantity demanded and the dollar will depreciate.
c. greater than the quantity demanded and the dollar will appreciate.
d. greater than the quantity demanded and the dollar will depreciate.
a
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Average product falls any time
a. marginal product is falling. b. marginal product is rising. c. marginal product is below it. d. total product is rising.
Keynesians believe ________
A) that economies move quickly to their long run equilibrium levels B) that the government should pursue active policies to stabilize economic fluctuations C) that the long run is more important than short-run fluctuations D) all of the above E) none of the above
Which statement is correct?
a. The discount rate is the rate banks charge one another on overnight loans b. The Federal funds rate is the rate banks charge their most creditworthy customers c. The real interest rate is greater than the nominal interest rate during periods of inflation d. The prime interest rate rises and falls with the Federal funds rate
If property rights are weak or uncertain, resource extraction will tend to:
A. occur faster than the rate that would maximize the long-run stream of profits. B. occur slower than the rate that would maximize the long-run stream of profits. C. occur at the rate that would maximize the long-run stream of profits. D. stop.