________ increases the supply of dollars in the foreign exchange market
A) An increase in the exchange rate
B) A decrease in the exchange rate
C) A rise in the expected future exchange rate
D) A fall in the interest rate in the U.S. relative to the interest rate in other countries
E) A rise in the interest rate in the U.S. relative to the interest rate in other countries
D
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Why did the monetary base increase rapidly during the economic crisis of 2008?
a. The Fed sold financial assets and extended fewer loans. b. The Fed increased both its purchase of assets and quantity of loans extended. c. The Fed increased its purchases of assets, but offset this with an increase in the reserve requirement. d. The Fed sold financial assets, but offset this with a reduction in the reserve requirement.
A balance of payments deficit is defined as the amount by which
A. a country’s exports exceed its imports. B. a currency must appreciate in order to reach equilibrium. C. quantity supplied of a country’s currency exceeds quantity demanded. D. quantity demanded of a country’s currency exceeds quantity supplied.
Which of the following is correct about the economic decisions consumers, firms, and the government have to make?
A) Governments may face the problem of shortages but not scarcity in making economic decisions. B) Only individuals face scarcity; firms and the government do not. C) Firms and the government face scarcity, individuals only face shortages. D) Each faces the problem of scarcity which necessitates trade-offs in making economic decisions.
The re insurance market is characterized as having:
A. few buyers and sellers. B. many buyers and sellers. C. a few buyers and many sellers. D. many buyers and a few sellers.