This topic contains a solution. Click here to go to the answer

Author Question: Interest rates in the United States rise relative to interest rates in other countries. As a result, ... (Read 137 times)

sabina

  • Hero Member
  • *****
  • Posts: 563
Interest rates in the United States rise relative to interest rates in other countries. As a result, in the foreign exchange market
 
  A) the supply curve of dollars shifts leftward.
  B) the supply curve of dollars shifts rightward.
  C) the demand curve for dollars shifts leftward.
  D) there is an upward movement along the supply curve of dollars.

Question 2

In the absence of the Ricardo-Barro effect, an increase in the government deficit results in a ________ real interest rate and a ________ equilibrium quantity of investment.
 
  A) higher; higher
  B) higher; lower
  C) lower; higher
  D) lower; lower



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kusterl

  • Sr. Member
  • ****
  • Posts: 315
Answer to Question 1

A

Answer to Question 2

B





 

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

For a complete list of videos, visit our video library