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 182 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
Gracias!


kalskdjl1212

  • Member
  • Posts: 353
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

For a complete list of videos, visit our video library