In the foreign exchange market, an increase in the U.S. interest rate leads to ________ in the exchange rate because the supply of dollars ________
A) a fall; decreases
B) a rise; increases
C) a rise; decreases
D) no change; does not change
E) a fall; increases
C
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Define savings rate. If the aggregate savings in an economy is $10,000 and the aggregate income in the economy is $70,000, what is the savings rate in the economy?
What will be an ideal response?
An increase in the marginal tax rate
A) decreases the expenditure multiplier but cannot make it negative. B) has no effect on the expenditure multiplier. C) can either increase or decrease the expenditure multiplier. D) increases the expenditure multiplier. E) decreases the expenditure multiplier and can make it negative.
A unit-elastic demand curve will be concave toward the origin .
Answer the following statement true (T) or false (F)
During the Great Depression in the 1930s unemployment was so bad that nearly _____ of the labor force was unemployed.
A. 1/2 B. 1/5 C. 1/4 D. 1/3