Author Question: In the foreign exchange market, an increase in the U.S. interest rate leads to ________ in the ... (Read 61 times)

penza · **on:** Jun 29, 2018

In the foreign exchange market, an increase in the U.S. interest rate leads to ________ in the exchange rate because the supply of dollars ________.

A) a fall; decreases
B) a rise; increases
C) a rise; decreases
D) no change; does not change
E) a fall; increases

Question 2

During a demand-pull inflation, if the Fed tries to maintain a level of real GDP above potential GDP, the AD curve will ________ and the AS curve will ________.

A) not shift; shift rightward continuously
B) shift rightward continuously; shift rightward continuously
C) shift rightward once; shift rightward continuously
D) shift rightward continuously; not shift
E) shift rightward continuously; shift leftward continuously