Author Question: According to this Application, because Argentina pegged its currency to the U.S. dollar, the ... (Read 142 times)

CORALGRILL2014

  • Hero Member
  • *****
  • Posts: 525
According to this Application, because Argentina pegged its currency to the U.S. dollar, the appreciation of the dollar caused a large trade deficit in Argentina. This trade deficit meant that
 
  A) the demand for Argentinean pesos exceeded the supply of the pesos.
  B) the demand for Argentinean pesos exceeded the supply of U.S. dollars.
  C) the supply of Argentinean pesos exceeded the demand for the pesos.
  D) the supply of Argentinean pesos exceeded the demand for U.S. dollars.

Question 2

As the economy enters a strong expansion, then firms' demand for loanable funds
 
  A) increases because the nominal interest rate rises.
  B) increases because expected profit increases.
  C) decreases because expected profit decreases.
  D) decreases because the nominal interest rate falls.
  E) increases because the real interest rate rises.



bassamabas

  • Sr. Member
  • ****
  • Posts: 294
Answer to Question 1

C

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

For a complete list of videos, visit our video library