Author Question: In foreign exchange markets, the effect of an increase in the supply of dollars on the value of the ... (Read 93 times)

jeatrice · **on:** Jun 30, 2018

In foreign exchange markets, the effect of an increase in the supply of dollars on the value of the dollar is the same as that of:
a. an increase in the supply of foreign currencies.
b. a decrease in the supply of foreign currencies.
c. a decrease in the demand for dollars.
d. either (b) or (c)

Question 2

Unanticipated inflation will benefit creditors at the expense of debtors.
a. True
b. False
Indicate whether the statement is true or false