This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose the market for dollars is in equilibrium, then the expected future exchange rate rises. What ... (Read 72 times)

809779

  • Hero Member
  • *****
  • Posts: 579
on: Jun 29, 2018
Suppose the market for dollars is in equilibrium, then the expected future exchange rate rises. What effect does this change have on the current exchange rate?
 
  A) It will rise.
  B) It will fall.
  C) It will remain unchanged.
  D) Because both the supply and demand curves shift, the effect on the exchange rate is unpredictable.

Question 2

Does a change in the real interest rate shift the supply of loanable funds curve? Explain your answer.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

dantucker

  • Sr. Member
  • ****
  • Posts: 346
Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

A change in the real interest rate does not shift the supply of loanable funds curve. Instead, the change in the real interest rate results in a change in the quantity of loanable funds supplied and a movement along the supply of loanable funds curve. The supply of loanable funds curve shifts if some factor that influences the supply of loanable funds other than the real interest rate changes.


809779

  • Member
  • Posts: 579
Reply 2 on: Jun 29, 2018
Excellent

juliaf

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

The four ways in which animals exchange heat with the environment are radiation, evaporation, convec The four ways in which animals exchange heat with the environment are radiation, evaporation, convec
Primary production is positively correlated with the evapotranspiration rate. Primary production is positively correlated with the evapotranspiration rate.
Lenticels Allow Gas Exchange through the Periderm Lenticels Allow Gas Exchange through the Periderm
Factors That Affect Your Basal Metabolic Rate Factors That Affect Your Basal Metabolic Rate
Computers Are Your Future Complete Computers Are Your Future Complete
The radius of the Sun is 6.95 × 108 m. It radiates heat at the rate of 5.32 x 10 The radius of the Sun is 6.95 × 108 m. It radiates heat at the rate of 5.32 x 10
Video: Type of Transport - Active and Passive Processes

For a complete list of videos, visit our video library