If the Fed increases interest rates, other things remaining the same, foreigners demand ________ dollars thereby ________ the exchange rate
A) more; increasing
B) more; decreasing
C) fewer; increasing
D) fewer; decreasing
E) the same number of; not affecting
A
You might also like to view...
Which of the following is an example of a supply shock?
A) a surprise increase of the money supply B) an increase in the price level C) a sharp increase in the price of oil D) an increase in government spending
Refer to the graph shown. The firm's profit-maximizing price is:
A. g. B. h. C. e. D. f.
The Fed's purchase of government securities could
A) increase loans made by banks. B) be an effective anti-inflationary policy. C) decrease the price level and have no effect on real GDP. D) decrease bank reserves.
The value of currently produced final goods and services measured in constant prices is called:
A) real GDP. B) nominal GDP. C) imputed values. D) inflation.