Other things the same, which of the following would cause the exchange rate to rise?
a. both an increase in the interest rate and an increase in foreign demand for U.S. goods and services.
b. an increase in the interest rate, but not an increase in foreign demand for U.S. goods and services.
c. an increase in foreign demand for U.S. goods and service, but not an increase in the U.S. interest rate.
d. neither an increase in the U.S. interest rate nor an increase in the demand for U.S. goods and services.
a
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A researcher claims that the standards of law and order are the basis of the economic prosperity of a certain country. This argument is based on the:
A) geography hypothesis. B) location hypothesis. C) culture hypothesis. D) institutions hypothesis.
How are most fundamental economic decisions now determined in China?
A) The government decides because China is a centrally planned economy. B) Individuals, firms, and the government interact in a market to make these economic decisions. C) The United Nations decides because China is a developing economy. D) These decisions are made by the country's elders who have had much experience in answering these questions.
Cash held by a bank in its vault is a part of the bank's
A. net worth. B. money supply. C. liabilities. D. reserves.
Along the portion of the consumption function that lies above the 45-degree line, saving is
A. equal to consumption. B. positive. C. negative. D. equal to zero.