If a dollar is more expensive in terms of a foreign currency than ...

[student77]

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

[KKcool]

Answer to Question 1

a

Answer to Question 2

True

[student77]

Excellent

[nyrave]

TYSM