Author Question: If the U.S. interest rate rises while interest rates in the rest of the world do not change, the ... (Read 80 times)

nmorano1

  • Hero Member
  • *****
  • Posts: 598
If the U.S. interest rate rises while interest rates in the rest of the world do not change, the higher U.S. interest rate
 
  A) decreases the demand for dollars.
  B) increases the demand for dollars.
  C) has no effect on the demand for dollars.
  D) will stop all trading between the currencies of the U.S. and other countries.

Question 2

In the loanable funds market, if the interest rate is above the equilibrium level
 
  A) there is a shortage of loanable funds.
  B) there is a surplus of loanable funds.
  C) expected profit falls.
  D) government expenditure decreases.



ebonylittles

  • Sr. Member
  • ****
  • Posts: 318
Answer to Question 1

B

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

Did you know?

Nitroglycerin is used to alleviate various heart-related conditions, and it is also the chief component of dynamite (but mixed in a solid clay base to stabilize it).

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

For a complete list of videos, visit our video library