If the expected future spot exchange rate value of the foreign currency decreases, with the interest rate differential unchanged, the current spot exchange-rate value of the domestic currency
A. decreases.
B. overshoots.
C. increases.
D. remains unchanged.
Answer: C
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Thomas Malthus' prediction of mass starvation resulting from diminishing marginal returns has not been fulfilled because
A) the law of diminishing marginal returns did not hold in this case. B) Malthus ignored other factors like technological change. C) relative to Malthus' day, larger percentage of today's labor works in the agricultural sector. D) All of the above.
A recent study found that it was cheaper to buy a chicken dinner from Kentucky Fried Chicken than it was to prepare it at home. The researcher included all costs including the imputed value of time involved to prepare the meal at home. This study illustrates the
a. value of marginal analysis. b. law of increasing costs. c. difference between real costs and money costs. d. cost disease of the service sector.
The deadweight loss associated with a tax on a commodity is generated by
a. the consumers who still choose to consume the commodity but pay a higher price that reflects the tax. b. the consumers who choose to not consume the commodity that is taxed. c. all citizens who are able to use services provided by government. d. the consumers who are unable to avoid paying the tax.
A monopsony exists when
A. there is a single seller with no rivals in an input market. B. there is a labor union controlling labor supply in a labor market. C. there is a single buyer with no rivals in an input market. D. employers in a labor market face a horizontal labor supply curve.