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

Author Question: Name three factors in the foreign exchange market that affect either the quantity of dollars ... (Read 22 times)

cartlidgeashley

  • Hero Member
  • *****
  • Posts: 572
on: Jun 29, 2018
Name three factors in the foreign exchange market that affect either the quantity of dollars demanded or the demand for dollars. Discuss whether the factor increases or decreases the number of dollars people want to hold.
 
  What will be an ideal response?

Question 2

The demand for loanable funds curve shows the
 
  A) positive relationship between the interest rate and the quantity of loanable funds demanded.
  B) positive relationship between the demand for loanable funds curve and the supply of loanable funds curve.
  C) U-shaped relationship between the interest rate and the quantity of loanable funds demanded.
  D) negative relationship between the interest rate and the quantity of loanable funds demanded.
  E) negative relationship between the demand for loanable funds curve and the supply of loanable funds curve.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Koolkid240

  • Sr. Member
  • ****
  • Posts: 357
Reply #1 on: Jun 29, 2018
Answer to Question 1

Three factors are the exchange rate, the U.S. interest rate differential, and the expected future exchange rate. If the exchange rate rises, the quantity of dollars demanded decreases. If the U.S. interest rate differential is larger (either because the U.S. interest rate rose or because foreign interest rates fell) then the demand for dollars increases. And, if the expected future value of the exchange rate is higher, then the current demand for dollars increases.

Answer to Question 2

D


cartlidgeashley

  • Member
  • Posts: 572
Reply 2 on: Jun 29, 2018
:D TYSM

AngeliqueG

  • Member
  • Posts: 343
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

The U.S. Pharmacopeia Medication Errors Reporting Program states that approximately 50% of all medication errors involve insulin.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Lenticels Allow Gas Exchange through the Periderm Lenticels Allow Gas Exchange through the Periderm
Gas exchange Gas exchange
Exon recognition through cooperative binding of SR proteins and splicing factors Exon recognition through cooperative binding of SR proteins and splicing factors
Risk Factors for Cardiovascular Disease Risk Factors for Cardiovascular Disease
Economic value (Dollars per Hectare) of sustainable ecosystems Economic value (Dollars per Hectare) of sustainable ecosystems
Key foreign policy agencies Key foreign policy agencies
Video: Multiple Sclerosis Animation

For a complete list of videos, visit our video library