Author Question: If the exchange rate is constant and U.S. exports increase, then in the foreign exchange market the ... (Read 83 times)

melina_rosy · **on:** Jun 29, 2018

If the exchange rate is constant and U.S. exports increase, then in the foreign exchange market the

A) supply of U.S. dollars increases.
B) demand for U.S. dollars increases.
C) demand for U.S. dollars decreases.
D) quantity of U.S. dollars demanded decreases.
E) quantity of U.S. dollars demanded increases.

Question 2

The money multiplier is used to determine how much the

A) quantity of money increases when the monetary base increases.
B) monetary base increases when the quantity of money increases.
C) monetary base increases when the Fed purchases government securities.
D) monetary base increases when the Fed sells government securities.
E) quantity of money increases when the required reserve ratio increases.