A(n) ________ in U.S. prices will cause a decrease in the demand for U.S. dollars and a(n) ________ in the (per dollar) exchange rate.
A. increase; increase
B. increase; decrease
C. decrease; increase
D. decrease; decrease
Answer: B
You might also like to view...
The opportunity cost of capital investment is the:
A. value of the marginal product of capital. B. value of the marginal product of labor. C. price of new capital goods. D. real interest rate.
Provide three examples of scarcity that illustrate why even the 1,210 billionaires in the world face scarcity
What will be an ideal response?
The implication of the expectations theory that expected returns for a holding period must be the same for bonds of different maturities depends on the assumption that
A) yield curves usually slope upward. B) yield curves usually slope downward. C) instruments with different maturities are perfect substitutes. D) savers are usually risk averse.
The net worth of a bank is
a. equal to the value of assets. b. equal to the value of deposits. c. equal to the value of liabilities. d. the value of assets less liabilities. e. the value of loans and securities.