Suppose you are traveling from the United States to Djibouti on vacation. You would be better off on your vacation if:
a. exchange rates did not change after you bought Djiboutian francs.
b. you had purchased Djiboutian francs in Djibouti and not in New York.
c. the Djiboutian franc became more powerful with respect to the U.S. dollar.
d. the exchange rate increased.
e. the exchange rate decreased.
Question 2
If the interest rate increases, then the:
a. economy will move to a new point along the existing consumption function.
b. consumption function will shift upward.
c. investment demand curve will shift downward.
d. investment demand curve will shift upward.
e. economy will move to a new point along the existing investment demand curve.
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