Author Question: The demand for the U.S. dollar in the foreign exchange market is a derived demand. A derived demand ... (Read 127 times)

pragya sharda · **on:** Jun 29, 2018

The demand for the U.S. dollar in the foreign exchange market is a derived demand. A derived demand means that the demand is derived from

A) government policy.
B) the demand for U.S. goods, services, and assets.
C) the supply of U.S. dollars.
D) the demand by U.S. residents for foreign goods, services, and assets.
E) the domestic demand for U.S. goods and services.

Question 2

If nominal GDP is 6.0 trillion and the quantity of money is 1.5 trillion, then the

A) velocity of circulation is 4.
B) price level is 4.00.
C) price level is 120.
D) price level is 110.
E) velocity of circulation is 10.