Author Question: If the U.S. interest rate differential rises, then the effect in the foreign exchange market on the ... (Read 115 times)

nelaaney

  • Hero Member
  • *****
  • Posts: 560
If the U.S. interest rate differential rises, then the effect in the foreign exchange market on the demand for dollars is that the
 
  A) demand for dollars decreases.
  B) quantity of dollars demanded decreases.
  C) quantity of dollars demanded increases.
  D) demand for dollars increases.
  E) demand for dollars does not change and the quantity of dollars demanded also does not change.

Question 2

Other things remaining the same, if the quantity of money increases by a given percentage, then in the long run the ________ by the same percentage.
 
  A) real interest rate rises
  B) price level rises
  C) nominal interest rate falls
  D) price level falls
  E) real interest rate falls



todom5090

  • Sr. Member
  • ****
  • Posts: 328
Answer to Question 1

D

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

For a complete list of videos, visit our video library