This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The figure above illustrates the U.S. foreign exchange market. Illustrate how the exchange rate ... (Read 178 times)

jenna1

  • Hero Member
  • *****
  • Posts: 568
on: Jun 29, 2018
The figure above illustrates the U.S. foreign exchange market. Illustrate how the exchange rate changes if the expected future exchange rate falls. Does the dollar appreciate or depreciate?
 
  What will be an ideal response?

Question 2

If firms became more optimistic about the future of the economy, which of the following occurs?
 
  A) Investment demand decreases, and the demand for loanable funds curve shifts leftward.
  B) The quantity of investment demanded increases, and there is a movement down along the demand for loanable funds curve.
  C) The quantity of investment demanded decreases, and there is a movement up along the demand for loanable funds curve.
  D) The saving decreases, and the supply of loanable funds curve shifts leftward.
  E) Investment demand increases, and the demand for loanable funds curve shifts rightward.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

IAPPLET

  • Sr. Member
  • ****
  • Posts: 333
Reply #1 on: Jun 29, 2018
Answer to Question 1

The fall in the expected future exchange rate decreases the demand for dollars and increases the supply. The demand curve shifts leftward and the supply curve shifts rightward. As shown in the figure, the exchange rate falls so the dollar depreciates.

Answer to Question 2

E


jenna1

  • Member
  • Posts: 568
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

ryhom

  • Member
  • Posts: 366
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

For this bimolecular reaction, the rate constant k is second order For this bimolecular reaction, the rate constant k is second order
A Glitch Interrupts the Vela Pulsar’s Spindown Rate A Glitch Interrupts the Vela Pulsar’s Spindown Rate
Sample Workout in the Target Heart Rate Range Sample Workout in the Target Heart Rate Range
Functional magnetic resonance image (fMRI). This image illustrates the areas of cortex that became ... Functional magnetic resonance image (fMRI). This image illustrates the areas of cortex that became ...
Dynamics of Capillary Exchange Dynamics of Capillary Exchange
Physics - Illustrate how you understand charging by rubbing or friction Physics - Illustrate how you understand charging by rubbing or friction
Video: Rena arc construction

For a complete list of videos, visit our video library