Suppose there are two countries, X and Y. If the exchange rate, as measured in X's currency, is currently 9, what do citizens of the nation of Y see when they read their newspapers?
a. The exchange rate for X's currency is 9.
b. The exchange rate for X's currency is more than 9.
c. The exchange rate for X's currency is 3.
d. The exchange rate for X's currency is 0.11.
e. Knowing one exchange rate does not mean we can tell the other exchange rate.
Question 2
Which one of the following will shift the investment demand curve leftward?
a. A technological breakthrough.
b. Lower tax rates.
c. Optimistic business expectations.
d. A lower rate of capacity utilization.
e. None of these.
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