Author Question: With everything else the same, in the foreign exchange market which of the following increases the ... (Read 54 times)

Jramos095 · **on:** Jun 29, 2018

With everything else the same, in the foreign exchange market which of the following increases the supply of U.S. dollars?

I. a fall in the U.S. interest rate
II. a fall in interest rates in foreign countries
III. a rise in expected future exchange rate
A) I only
B) I and II only
C) I and III only
D) I, II, and III

Question 2

In the absence of a Ricardo-Barro effect, a government budget deficit ________ the demand for loanable funds, ________ the real interest rate, and ________ investment.

A) increases; increases; crowds out
B) increases; decreases; increases
C) decreases; increases; increases
D) decreases; increases; crowds out