Author Question: The larger the MPC, the smaller the value of the multiplier. Indicate whether the statement is ... (Read 133 times)

ARLKQ

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The larger the MPC, the smaller the value of the multiplier.
 
  Indicate whether the statement is true or false

Question 2

Currency traders expect the value of the dollar to fall. What effect will this have on the demand for dollars and the supply of dollars in the foreign exchange market?
 
  A) Demand for dollars will decrease, and supply of dollars will decrease.
  B) Demand for dollars will increase, and supply of dollars will decrease.
  C) Demand for dollars will increase, and supply of dollars will increase.
  D) Demand for dollars will decrease, and supply of dollars will increase.



ally

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Answer to Question 1

FALSE

Answer to Question 2

D



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