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

Author Question: Name three factors in the foreign exchange market that affect either the quantity of dollars ... (Read 31 times)

cartlidgeashley

  • Hero Member
  • *****
  • Posts: 572
on: Jun 29, 2018
Name three factors in the foreign exchange market that affect either the quantity of dollars demanded or the demand for dollars. Discuss whether the factor increases or decreases the number of dollars people want to hold.
 
  What will be an ideal response?

Question 2

The demand for loanable funds curve shows the
 
  A) positive relationship between the interest rate and the quantity of loanable funds demanded.
  B) positive relationship between the demand for loanable funds curve and the supply of loanable funds curve.
  C) U-shaped relationship between the interest rate and the quantity of loanable funds demanded.
  D) negative relationship between the interest rate and the quantity of loanable funds demanded.
  E) negative relationship between the demand for loanable funds curve and the supply of loanable funds curve.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Koolkid240

  • Sr. Member
  • ****
  • Posts: 357
Reply #1 on: Jun 29, 2018
Answer to Question 1

Three factors are the exchange rate, the U.S. interest rate differential, and the expected future exchange rate. If the exchange rate rises, the quantity of dollars demanded decreases. If the U.S. interest rate differential is larger (either because the U.S. interest rate rose or because foreign interest rates fell) then the demand for dollars increases. And, if the expected future value of the exchange rate is higher, then the current demand for dollars increases.

Answer to Question 2

D


cartlidgeashley

  • Member
  • Posts: 572
Reply 2 on: Jun 29, 2018
Gracias!

cici

  • Member
  • Posts: 325
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

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?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Countercurrent heat exchange in the lateral muscles of bluefin tuna. Countercurrent heat exchange in the lateral muscles of bluefin tuna.
CHD Risk Factors CHD Risk Factors
Many electronic components are used to construct a typical vehicle computer. Notice the quantity of ... Many electronic components are used to construct a typical vehicle computer. Notice the quantity of ...
Entropic and enthalpic factors in catalysis Entropic and enthalpic factors in catalysis
Other Factors Affecting Pulmonary Ventilation Other Factors Affecting Pulmonary Ventilation
Pioneer factors Pioneer factors
Video: Alternative Energy Sources

For a complete list of videos, visit our video library