Author Question: In the foreign exchange market, which of the following shifts the supply curve of dollars leftward? ... (Read 61 times)

craiczarry · **on:** Jun 29, 2018

In the foreign exchange market, which of the following shifts the supply curve of dollars leftward?

A) The current exchange rate falls.
B) The expected future exchange rate falls.
C) The current exchange rate rises.
D) The expected future exchange rate rises.
E) None of the above answers is correct.

Question 2

Increases in the quantity of money can start a ________ inflation and an increase in government expenditure can start a ________ inflation.

A) demand-pull; cost-push
B) cost-push; cost-push
C) cost-push; demand-pull
D) demand-pull; demand-pull
E) None of the above is correct because increases in the quantity of money are necessary to continue an inflation but cannot start an inflation.