Author Question: If the exchange rate is constant and U.S. imports increase, then in the foreign exchange market the ... (Read 150 times)

moongchi

  • Hero Member
  • *****
  • Posts: 516
If the exchange rate is constant and U.S. imports increase, then in the foreign exchange market the
 
  A) quantity of U.S. dollars supplied increases.
  B) supply of U.S. dollars increases.
  C) supply of U.S. dollars decreases.
  D) demand for U.S. dollars increases.
  E) quantity of U.S. dollars supplied decreases.

Question 2

According to the quantity theory of money, what is the effect of an increase in the quantity of money?
 
  What will be an ideal response?



mtmmmmmk

  • Sr. Member
  • ****
  • Posts: 335
Answer to Question 1

B

Answer to Question 2

According to the quantity theory, in the long run an increase in the quantity of money brings an equal percentage increase in the price level.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

Persons who overdose with cardiac glycosides have a better chance of overall survival if they can survive the first 24 hours after the overdose.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

The most destructive flu epidemic of all times in recorded history occurred in 1918, with approximately 20 million deaths worldwide.

For a complete list of videos, visit our video library