If for some reason Americans wished to purchase more foreign assets, then other things the same
a. both the real exchange rate and the quantity of dollars exchanged in the market for foreign-currency exchange would fall.
b. both the real exchange rate and the quantity of dollars exchanged in the market for foreign-currency would rise.
c. the real exchange rate would rise and the quantity of dollars exchanged in the market for foreign-currency would fall.
d. the real exchange rate would fall and the quantity of dollars exchanged in the market for foreign-currency would rise.
D
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A decrease in the supply of dollars on the foreign exchange market, all else equal, will result in:
A) appreciation of the U.S. dollar and depreciation of the foreign currency. B) appreciation of the U.S. dollar and appreciation of the foreign currency. C) depreciation of the U.S. dollar and depreciation of the foreign currency. D) depreciation of the U.S. dollar and appreciation of the foreign currency.
A bank that improves its service may be able to __________ the rate on its loans and so __________ its net interest income
A) lower; lower B) lower; raise C) raise; lower D) raise; raise
Based on the classical view,
A. All goods produced are always purchased at an unchanging price. B. Unemployment never occurs. C. Cyclical unemployment might occur temporarily. D. Persistent unemployment might be a problem.
When a price fails to reflect all the benefits of a product, too much of it is produced and/or consumed
a. True b. False Indicate whether the statement is true or false