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Author Question: Interest rates in the United States rise relative to interest rates in other countries. As a result, ... (Read 270 times)

sabina

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on: Jun 29, 2018
Interest rates in the United States rise relative to interest rates in other countries. As a result, in the foreign exchange market
 
  A) the supply curve of dollars shifts leftward.
  B) the supply curve of dollars shifts rightward.
  C) the demand curve for dollars shifts leftward.
  D) there is an upward movement along the supply curve of dollars.

Question 2

In the absence of the Ricardo-Barro effect, an increase in the government deficit results in a ________ real interest rate and a ________ equilibrium quantity of investment.
 
  A) higher; higher
  B) higher; lower
  C) lower; higher
  D) lower; lower


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kusterl

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

B


sabina

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Reply #2 on: Jun 29, 2018
Thank you


kusterl

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Reply #3 on: Jun 29, 2018
No problemo


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