« previous next »

Author Question: If the exchange rate appreciates, then the A) quantity of dollars demanded increases. B) demand ... (Read 67 times)

tiara099

  • Hero Member
  • *****
  • Posts: 588
on: Jun 29, 2018
If the exchange rate appreciates, then the
 
  A) quantity of dollars demanded increases.
  B) demand for dollars decreases.
  C) quantity of dollars demanded decreases.
  D) demand for dollars increases.
  E) supply of dollars decreases.

Question 2

What is the short-run and long-run effect on the nominal interest rate from an increase in the growth rate of the quantity of money?
 
  What will be an ideal response?


epscape

  • Sr. Member
  • ****
  • Posts: 335
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

In the short run, the increase in the growth rate of the quantity of money lowers the nominal interest rate. However in the long run the increase in the growth rate of the quantity of money creates higher inflation and the higher inflation leads to a rise in the nominal interest rate.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

Chronic marijuana use can damage the white blood cells and reduce the immune system's ability to respond to disease by as much as 40%. Without a strong immune system, the body is vulnerable to all kinds of degenerative and infectious diseases.

Cross-sectional data showing that the amount of effort spent on personal health care increases with Cross-sectional data showing that the amount of effort spent on personal health care increases with
Fluidization - Reaction Rate Chart Fluidization - Reaction Rate Chart
How an Increase in Income Inequality Affects the Desired Tax Rate How an Increase in Income Inequality Affects the Desired Tax Rate
Effect of Increasing the Investment Rate on the Steady State Effect of Increasing the Investment Rate on the Steady State
Saving Rate by Decile of Income per Capita Saving Rate by Decile of Income per Capita
Find the factor demand for labour and the amount of output it will produce. Show all ... Find the factor demand for labour and the amount of output it will produce. Show all ...
Video: Hormones and the menstrual cycle Animation

For a complete list of videos, visit our video library