This topic contains a solution. Click here to go to the answer

Author Question: If people expect the future exchange rate for dollars will be lower, then in the foreign exchange ... (Read 196 times)

captainjonesify

  • Hero Member
  • *****
  • Posts: 543
If people expect the future exchange rate for dollars will be lower, then in the foreign exchange market the current
 
  A) quantity demanded of dollars decreases.
  B) demand for dollars decreases.
  C) quantity demanded of dollars increases.
  D) demand for dollars increases.
  E) supply of dollars decreases.

Question 2

Assume an economy begins with zero inflation, a 25 percent income tax rate, and a real interest rate of 4 percent.
 
  If inflation rises to 4 percent, the nominal interest rate becomes ________ percent and the after-tax real interest becomes ________ percent.
  A) 8; 6 B) 8; 2 C) 0; 1 D) 8; 4 E) 6; 2



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

SAUXC

  • Sr. Member
  • ****
  • Posts: 318
Answer to Question 1

B

Answer to Question 2

B




captainjonesify

  • Member
  • Posts: 543
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it


mjenn52

  • Member
  • Posts: 351
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

Did you know?

Thyroid conditions may make getting pregnant impossible.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

For a complete list of videos, visit our video library