If people expect the foreign exchange rate for dollars to rise in ...

[jjjetplane]

If people expect the foreign exchange rate for dollars to rise in the future
 
  A) the demand for dollars today decreases.
  B) the demand for dollars today increases.
  C) the demand for dollars today is unaffected.
  D) there is a movement along the demand curve for dollars.

Question 2

The U.S. personal savings rate for the first quarter of 2012 dropped to its lowest level since the start of the recession. Americans stashed away 3.6 percent of personal income in the first quarter, down from 4.
 
  2 percent in the fourth quarter and a near-term peak of 6.2 percent in the second quarter of 2009. Which of the following could explain this drop in savings? A) a decrease in wealth from a fall in stock prices
  B) a rise in the real interest rate
  C) an increase in disposable income as the job market recovers
  D) a rise in consumer confidence that their incomes will be higher in the future

[zacnyjessica]

Answer to Question 1

B

Answer to Question 2

D

[jjjetplane]

Correct answers!

[zacnyjessica]

Great! Please up vote