In international exchange markets, a rise in interest rates in the United States will cause the demand for dollars to ________ and the supply of dollars to ________
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
Answer: B
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Which of the following will lead to a depreciation of the U.S. dollar against the British pound?
A) an increase in British demand for U.S. imports B) an increase in U.S. interest rates C) a decrease in British demand for U.S. assets D) a decrease in U.S. demand for British goods
Should stock market speculation be encouraged or discouraged?
When the U.S. real interest rate falls, purchasing U.S. assets becomes
a. less attractive and so U.S. net capital outflow rises. b. less attractive and so U.S. net capital outflow falls. c. more attractive and so U.S. net capital outflow rises. d. more attractive and so U.S. net capital outflow falls.
Suppose earnings are given by E = $60 + $7(24 ? L), where E is earnings and L is the hours of leisure. How much is this person working if her daily earnings are $116?
A. 12 hours B. 18 hours C. 16 hours D. 8 hours