The demand for dollars in the foreign exchange market
A. Is represented by a point in a diagram of foreign exchange supply and demand.
B. Depends on U.S. demand for foreign goods and services.
C. Is the ratio of the dollars demanded to the amount of foreign currency supplied.
D. Depends in part on the foreign demand for U.S. goods.
Answer: D
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Nominal GDP has risen faster than real GDP in the last decade because: a. the price level has increased
b. the price level has decreased. c. the growth rate of productivity has accelerated. d. the volume of foreign trade has expanded sharply.
Which of the following would increase the government purchases component of U.S. GDP?
A. The U.S. federal government pays $3 billion in pensions to government workers. B. The U.S. federal government pays $3 billion in interest to foreign holders of U.S. government bonds. C. The U.S. federal government pays $3 billion in interest on the national debt. D. The U.S. federal government pays $3 billion in salaries to soldiers in the military.
When a 2 percent increase in price generates a greater than 2 percent decrease in quantity demanded, then:
A. demand is inelastic. B. total revenue increases as a result of the price increase C. total revenue decreases as a result of the price increase. D. demand is unit elastic.
When factors of production move to better-paying sectors of the economy in the long run after the opening of trade in the country, wages and rents will be bid back to their pre-trade levels.
Answer the following statement true (T) or false (F)