« previous next »

Author Question: If the exchange rate appreciates, then the A) quantity of dollars demanded increases. B) demand ... (Read 42 times)

tiara099

  • Hero Member
  • *****
  • Posts: 588
on: Jun 29, 2018
If the exchange rate appreciates, then the
 
  A) quantity of dollars demanded increases.
  B) demand for dollars decreases.
  C) quantity of dollars demanded decreases.
  D) demand for dollars increases.
  E) supply of dollars decreases.

Question 2

What is the short-run and long-run effect on the nominal interest rate from an increase in the growth rate of the quantity of money?
 
  What will be an ideal response?


epscape

  • Sr. Member
  • ****
  • Posts: 335
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

In the short run, the increase in the growth rate of the quantity of money lowers the nominal interest rate. However in the long run the increase in the growth rate of the quantity of money creates higher inflation and the higher inflation leads to a rise in the nominal interest rate.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

C, A nurse can also administer the medication by setting the dose and rate with an electronic infusi C, A nurse can also administer the medication by setting the dose and rate with an electronic infusi
Relationship between Income Inequality and the Desired Tax Rate Relationship between Income Inequality and the Desired Tax Rate
Fertility, Mortality, and the Net Rate of Reproduction in Sweden Fertility, Mortality, and the Net Rate of Reproduction in Sweden
Exchange of Oxygen and Carbon Dioxide Exchange of Oxygen and Carbon Dioxide
Countercurrent Exchange Countercurrent Exchange
Outgroup role in relative rate test Outgroup role in relative rate test
Video: Component of feedback systems & Communication and regulation of body systems

For a complete list of videos, visit our video library