A decrease in the demand for American-made goods will
A) increase the supply of dollars in the foreign exchange market.
B) decrease the supply of dollars in the foreign exchange market.
C) increase the demand for dollars in the foreign exchange market.
D) decrease the demand for dollars in the foreign exchange market.
Answer: D
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Explain the Fed's countercyclical operations
When bond prices fall, interest rates rise.
Answer the following statement true (T) or false (F)
Which of the following statements is most correct?
A. A sterilized foreign exchange intervention will alter the composition of a central bank's assets and alter commercial bank reserves. B. A sterilized foreign exchange intervention will leave the central bank's holdings of foreign reserves unchanged. C. A sterilized foreign exchange intervention will not alter the composition of a central bank's assets. D. An unsterilized foreign exchange intervention will alter commercial bank reserves.
An increase in aggregate demand would be most likely caused by a decrease in:
A. the tax rates on household income. B. the wealth of consumers. C. consumer confidence. D. expected future prices.