Author Question: If a dollar is more expensive in terms of a foreign currency than the equilibrium exchange rate, a ... (Read 131 times)

student77 · **on:** Jun 30, 2018

If a dollar is more expensive in terms of a foreign currency than the equilibrium exchange rate, a ____ exists at the current exchange rate that will put ____ pressure on the exchange value of a dollar.
a. surplus of dollars; downward
b. surplus of dollars; upward
c. shortage of dollars; downward
d. shortage of dollars; upward

Question 2

The real interest rate is calculated by subtracting inflation from the nominal interest rate.
a. True
b. False
Indicate whether the statement is true or false