Which of the following is likely to decrease the supply of U.S. dollars in the forex market?
A. If foreign interest rates are low relative to U.S. interest rates
B. If investors' confidence in foreign economies increases
C. If U.S. consumers prefer foreign goods to U.S. goods
D. All of these will increase the supply of U.S. dollars.
A. If foreign interest rates are low relative to U.S. interest rates
You might also like to view...
An increased federal budget deficit resulting from a recession can actually help stabilize an economy through transfer payments because an increased budget deficit will ________ transfer payments and thereby ________ the income of some households
A) increase; increase B) decrease; decrease C) increase; decrease D) decrease; increase
If the nominal interest rate is 3% and the inflation rate is 6%, the real interest rate is
a. 2% b. 3% c. -3% d. 9%
"The resources now going into the War on Terrorism and into improved airport security would save more lives if they were invested in medical research." This statement most clearly reflects which of the following?
a. The best test of an economic theory is its ability to predict. b. There is no such thing as a free lunch--the use of scarce resources always has an opportunity cost. c. selfishness; if people were not selfish, we could have more of everything. d. The value of goods can be determined objectively.
Measuring the effects of labor immigration shows:
a. that as workers move, they disrupt their families and cause huge costs in the recipient nation. b. that most immigrants spend months trying to find work. c. that immigration benefits the recipient nation by raising the marginal product of capital, expanding laborintensive production, and lowering prices of laborintensive goods. d. that immigration is very harmful to the host nation because of a huge increase in the unemployment rate