Author Question: Which of the following factors could lead to an upward movement along the demand curve as indicated ... (Read 69 times)

Chelseaamend · **on:** Jun 29, 2018

Which of the following factors could lead to an upward movement along the demand curve as indicated by the arrow?

i. an increase in the U.S. interest rate
ii. a decrease in the U.S. interest rate
iii. an increase in the expected future U.S. exchange rate.
A) i only
B) ii only
C) i and iii
D) ii and iii
E) None of the factors could lead to the upward movement illustrated by the arrow.

The figure above shows demand curves for dollars in the foreign exchange market.

Question 2

Compared to the magnitude of the multiplier in an economy without imports, the multiplier in an identical economy with imports is

A) larger only if exports exceed imports.
B) smaller only if imports exceed exports.
C) always larger.
D) exactly the same.
E) always smaller.