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

Author Question: When firms reduce their target level of inventories, planned investment ________, and equilibrium ... (Read 102 times)

tnt_battle

  • Hero Member
  • *****
  • Posts: 556
on: Jun 29, 2018
When firms reduce their target level of inventories, planned investment ________, and equilibrium expenditure and real GDP ________.
 
  A) rises; increase
  B) falls; remains the same
  C) rises; decrease
  D) falls; decrease
  E) falls; increase

Question 2

In the foreign exchange market, how does a change in expected future U.S. exchange rate affect the demand for dollars?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

annierak

  • Sr. Member
  • ****
  • Posts: 340
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

Changes in the expected future exchange rate change the demand for dollars. If the expected future exchange rate falls, the demand for dollars decreases and the demand curve shifts leftward because the expected profit from holding dollars decreases. If the expected future exchange rate rises, the demand for dollars increases and the demand curve shifts rightward because the expected profit from holding dollars increases.


tnt_battle

  • Member
  • Posts: 556
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

mcabuhat

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Normal development of posture and spinal curves. (A) Toddler: Protruding abdomen; lumbar lordosis. ( Normal development of posture and spinal curves. (A) Toddler: Protruding abdomen; lumbar lordosis. (
Hormones and their target cells. Hormones and their target cells.
Using a water-based cleaning system helps reduce the hazards from using strong chemicals. Using a water-based cleaning system helps reduce the hazards from using strong chemicals.
Interaction between a CD8+ T cell and its target. Interaction between a CD8+ T cell and its target.
One of the best ways to reduce your chances of catching a cold One of the best ways to reduce your chances of catching a cold
Share of Hours Worked by Education Level, 1940–2008 Share of Hours Worked by Education Level, 1940–2008
Video: Protein catabolism - deamination

For a complete list of videos, visit our video library