Interest rates in the United States rise relative to interest ...

[sabina]

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

[kusterl]

Answer to Question 1

A

Answer to Question 2

B

[sabina]

Thank you

[kusterl]

No problemo