This topic contains a solution. Click here to go to the answer

Author Question: If people expect the future exchange rate for dollars will be lower, then in the foreign exchange ... (Read 183 times)

captainjonesify

  • Hero Member
  • *****
  • Posts: 543
If people expect the future exchange rate for dollars will be lower, then in the foreign exchange market the current
 
  A) quantity demanded of dollars decreases.
  B) demand for dollars decreases.
  C) quantity demanded of dollars increases.
  D) demand for dollars increases.
  E) supply of dollars decreases.

Question 2

Assume an economy begins with zero inflation, a 25 percent income tax rate, and a real interest rate of 4 percent.
 
  If inflation rises to 4 percent, the nominal interest rate becomes ________ percent and the after-tax real interest becomes ________ percent.
  A) 8; 6 B) 8; 2 C) 0; 1 D) 8; 4 E) 6; 2



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

SAUXC

  • Sr. Member
  • ****
  • Posts: 318
Answer to Question 1

B

Answer to Question 2

B




captainjonesify

  • Member
  • Posts: 543
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)


komodo7

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

For a complete list of videos, visit our video library