Author Question: Assume that you have just returned to the United States from a summer vacation in Russia, where you ... (Read 77 times)

vHAUNG6011 · **on:** Jun 30, 2018

Assume that you have just returned to the United States from a summer vacation in Russia, where you exchanged American dollars for Russian rubles. Your economic actions can be said to have:
a. increased the supply of American dollars in Russia.
b. decreased the supply of Russian rubles in America.
c. decreased the supply of American dollars in Russia.
d. increased the demand for American dollars in America.
e. increased the supply of Russian rubles in Russia.

Question 2

If real interest rates were 6 in country A and 4 in country B, the real interest rate in both countries will move toward 5.
a. True
b. False
Indicate whether the statement is true or false