If more European and Japanese firms want to build factories and expand their offshore investments in the United States, the supply of U.S. dollars on foreign exchange markets will increase as a result of this investment activity
Indicate whether the statement is true or false
FALSE
You might also like to view...
Describe the chain of events leading to exchange rate determination for the following cases:
(a) An increase in U.S. money supply (d) Increase in growth rate of U.S. money supply (c) Increase in world relative demand for U.S products (d) Increase in relative U.S. output supply
One similarity between the policy recommendations of the new classical and monetarist models is that
a. both believe that monetary policy has much stronger employment effects than does fiscal policy. b. are policy activists. c. both believe in the natural rate of output. d. both believe that discretion is preferable to rules. e. none of the above.
In the production function Real GDP = T (L, K), the T represents the tax coefficient
Indicate whether the statement is true or false
The law of comparative advantage explains which of the following?
What will be an ideal response?